What a terrible time you've had MissK1988.

It sounds as though your trust deed has done more harm than good - paying money into it that was needed for more important things.

What's your concern about bankruptcy out of interest?

I just feel like it would be such a kick in the teeth to have fought it this long and fail right at the very end 🙁

If I manage to keep going, can I sign another one as soon as I am discharged or do I need to wait on Knightsbridge also being discharged?

Hi again.

I guess I'm wondering whether you'd consider bankruptcy second time around, after your trust deed has been completed?

Hi MissK1988,

I'm sorry to hear of the difficulties you have faced over the last couple of years that has unfortunately resulted in the accumulation of further debts. Things like this happen in life and it's more common than you think so I wouldn't beat yourself up about it too much.

How much in total would you say the additional debts are?

You are certainly able to consider another Trust Deed once you are discharged.

As you know in a Trust Deed you ideally need to maintain a suitable contribution for the Trust Deed to continue and complete. If you are unable to do so then there is a risk that the Trust Deed will fail.

Reading your post about what has happened over the last couple of years it sounds like you have tried as hard as you can to maintain your Trust Deed via a wage arrestment but unfortunately this has resulted in the accumulation of further debts. I wouldn't say that this is idea or that the Trust Deed has really worked for it. A Trust Deed should help to clear the debts you cannot afford and it shouldn't result in further debts being incurred through trying to maintain the payment. In situations like this a payment reduction should be considered or alternative options explored.

Sequestration on the other hand is purely based on what you can afford to pay per month. There is no minimum payment for it to be able to continue. If for example you cannot afford a payment per month you are not required to pay one and you are still debt free. This is unlike the Trust Deed whereby you need to maintain the payments.

I wouldn't like for you to be solely focused on another Trust Deed when the first one hasn't been ideal for you trying to maintain the payment.

My advice would be to speak with a qualified expert who deals with Trust Deeds and Sequestrations on a daily basis. That way the expert can give you an overview of Sequestration in full. I wouldn't look at Sequestration as a kick in the teeth either. It's marginally different from a Trust Deed. Kevin or I would be happy to discuss this with you.

If after speaking with an expert you decide to proceed with another Trust Deed then at least you can look back knowing you fully explored all of your options.

Is that correct? Since 2002? I'm struggling to get my head around that to be honest. Sure, your circumstances changed, but Trust Deeds are meant to be flexible so that they are completed within a reasonable time, even if creditors are not necessarily getting as much as the original proposals.

It sounds like you may have been better off going bankrupt a long time ago and all of these subsequent debts may never have a risen. Did your trustee discuss that option with you at all back when you first got into difficulties with the Trust Deed?