We stopped paying right away and saved up what we would have been paying as a little emergency fund for use during the trust deed.

As for telling creditors it makes no difference,you could tell them on monday you are going for a trust deed and on tuesday they will phone to ask why your direct debit has been cancelled!!!!

Have you opened a bank account with someone you dont owe money to??

Paul

yes I had that already.

Hi Carole

I stopped paying my creditors as soon as I had decided to go into a trust deed and met with my IP. Your creditors will continue to call you but explain you are in the process of setting up a TD. They usually say that the calls/letters will continue until the receive the offical paperwork etc.

Should you cancel the DDs to the creditors?

You should. Once the trust deed is signed then really any payments to creditors should be made via the trust deed to ensure the funds are being shared out in the right proportions and all creditors are being treated fairly.

Make sure you allow your bank time to cancel things,dont leave it too late or some things you dont want paid may get paid.

Paul

HI Experts and all...

I would worry about not paying things as it would then look like the disposable income is greater when bank statements are reviewed for setting up TD or Bankruptcy. Have I picked this up wrong-is it only the unsecured debts to c.cards/loans that can be stopped as they won't be part of the income/expenditure calculations anyway?

I'm assuming accounts which will continue-utilities, phone, insurance etc should still be paid up to and throughout the TD/Sequestration set up and it's duration?

Hello Pamjo.

I think we're only talking about the unsecured debts that will be included in a trust deed, and then only once advice has been taken and a commitment to proceed has been made.

Got it-makes sense.