Hi johng

There is no legal restriction in obtaining debt after you've signed the trust deed, although further debt may jeopardise the trust deed if you can't maintain the payments.

Best speak to your trustee and get their comments. It may be that they could reduce the payments, however if it's payday loans with the interest they attract, it may be difficult to juggle both.

Mark

Welcome to the trust deed forum johng.

There might not be any easy answers here I'm afraid.

You probably haven't broken any trust deed rules, but I doubt that it's possible to continue to pay the trust deed and repay these debts?

The debts cannot be added to your trust deed.

Do you have any significant assets, or employment that might be threatened by bankruptcy? It could be that the trust deed be allowed to fail and all of your debts be taken care of in sequestration.

Do you have anyone to repay these debts with a view to you sorting that out after your trust deed finishes?

Another thought might be to simply not repay the payday loans until the trust deed is finished. The problem of course is that you will not be debt free, the balances may mount up, and you'd be exposed to legal action.

There's a consultation going on at the moment about whether payday lenders are meeting their responsibility to be responsible lenders. Lending £5000 to someone that is in a protected trust deed really illuminates their claims in this respect to be utterly false.

Hi Mark

Problem is i cant afford the payday loan repayments at all.

Is there any way they could be covered by my TD and I would simply pay a bit more to the TD but not have the interest rates.

I know i have really messed up, again, but have no idea what to do.

Can you explain what jeopardising the TD would mean ?

Thanks

John

Hi johng.

I think we were writing at the same time.

I may have covered some of your questions?

HI TDA

I think we must have been typing at the same time.

If I approach my Trustee and explain my situation for further advice. Can they cancel my TD and force me into bankruptcy?

I do have a relatively well paid job and a house with approx. £20k equity which I think will be looked at after the 3 years?

I'm a bit weary of approaching the Trustee

Thanks

John

I can understand why you are wary John, with that level of equity the home could be at risk in bankruptcy.

How did you intend to cover the equity at the end of your trust deed?

Hi TDA

I think my trustee that said that the TD may have to run for another two years after the original three to clear the equity.

Does this sound correct?

Thanks

John

It could well be John. How much is your currently monthly trust deed payment?

£293 per month

Hi Johng

Is the equity jointly owned. If its the full £20k, the figures don't add up unfortunately.

Mark

Hi Mark

The house is solely in my name as is the mortgage.

Can you explain what you mean by the figures dont add up.

Thanks

John

Hi johng

Equity is £20k. The proposed extension is 24 x £293= £7,032. The shortfall is therefore £13k

Mark

Regarding the Payday Loans, there is no question that these companies are extremely irresponsible lenders. However, they are often quite good at freezing interest if you approach them with a repayment plan if you cannot repay them. I would suggest that you look at how much extra you could afford to pay and see if you can negotiate a deal. Worth a try.

Uncleben makes a good point there John.

Can I suggest to contact your trust deed firm to confirm exactly what will be required in terms of the equity in your home in order for you to be discharged.

If you do, please let us know the outcome.

That will help us to provide a better comparison for you between the routes that may be open from here.