Hi Penny1286.

Any decision to end the trust deed early will, as you have stated in your post title, be at the discretion of your trustee.

From their perspective, I think the first step will be to assess your income and expenditure based upon a 20 hour working week.

If there is no disposable income, or very little, they may be open to bringing the trust deed to an early end.

The health of your child really should be a significant factor in their thinking, though there's no getting around the fact that they have to consider the interests of your creditors at the same time.

When was your trust deed signed please?

Hi Penny1286,

Can I ask how much debt you have and if you are a homeowner or have any other assets?

I’m sure it was December 2015 it was signed and i have it for 5 years due to being a home owner (had not long took the mortgage though so not much equity). I also can’t remember how much debt in total but I’m sure my payments were around £200 a month to start with.

Hi Penny

This is down to the trustee and they can either resign from office to take you out of the trust deed or petition for the sequestration of your estate.

It is very difficult to bring the trust deed to an early end if the case was signed after 30 November 2013. The minimum period term is 48 months.

I would speak to your trustee and discuss the various options available.

So would sequestration of my estate end up making my family homeless?

If the trustee resigns from office do they petition for sequestration or does it just put you back to dealing with debtors yourself?

It’s very frustrating as I think I would still be able to manage about £150 a month (which isn’t that much less than originally agreed) but it seems now it’s signed they want to push for too much despite not that much of a change in income and rising living costs.

Hi Penny1286.

If you have equity in your property I'm afraid that sequestration (bankruptcy) could pose a threat to your home.

The trustee does not have to make you bankrupt.

Understanding your circumstances might make them more reluctant to consider this option.

I do think trying to persist and agree an affordable payment with your trustee could produce the best outcome for all involved here.

I agree TDA - perhaps a third party family member can make payments on your behalf?

Best speaking with your trustee to explore the position further.

As I said, I’m still going to be able to pay about £150 but need to wait and see if this is going to be seen as enough.

A trust deed should be flexible enough to take account of circumstances which are out of your control. Even if your creditors don't stand to get as much as was originally estimated due to a reduction in your affordability, this shouldn't necessarily be a bar to you successfully completing your Trust Deed and being discharged from your debts after the 5-year period.

I’m just worried that a decrease in payments is going to end up extending my trust deed by even more. I understand adding the last year on as no payments were being made but due to my Daughters disabilities we are most likely going to have to move house before she is 5/6 probably and extending it is going to obviously delay that.

What you can afford from your income by way of a monthly contribution is separate from anything that was agreed regarding the equity in your home. So, whilst a change in your circumstances shouldn't necessarily mean your contributions being extended, it may be that it will take you longer to pay in what was originally agreed for equity buy-out.

I was to pay 12x £289 for equity which I probably have done but does this count at the start or end of term of trust deed?

Hi Penny1286.

That would usually be at the end of the term, once your obligations to make regular payments from surplus income had been completed.

They have just told me I have 68 months remaining. I have made 22 payments then a year break. All very confusing.