We can't tell you what will happen Hf1998. Your trustee has a number of options. They might include:

They might discharge you after a number of missed payments, but not discharge you from your debts. You'd probably lose everything you've paid into your trust deed as it will be covering fees at the relatively early stage you're currently at. You'll need to make new arrangements with your creditors.

They might conclude you're acting unreasonably, have the capacity to maintain your payments, and therefore decide to seek a wage arrestment so that payments are made directly to your trust deed by your employer (before they pay you).

The might seek to bankrupt you. You'd then be starting from scratch with four years of payments to make based upon pretty much the same calculation as would apply to the remainder of your trust deed anyway. Assets you own might be put at further jeopardy.

Thanks TDA for replying, I don't really want to miss payments it wouldn't be the best way forward but really want out of trust deed. Really just don't know what to do.

Is there any members on here who could advise me what has happened to them after stopping payments?

Is there any members on here who could advise me what has happened to them after stopping payments?

Hi Hf1998,

I can tell you what our procedure would be.

If a client has missed 2 consecutive payments and is failing to make payments but their circumstances haven’t changed i.e. fall in income or increase in payments then we will apply to their employer for payment.

We would only look to declare a client bankrupt if we had exhausted all options and could not secure an arrestment on their income for the payment.

Also releasing someone from their Trust Deed would only be as a last resort.

I would really encourage you to speak to your Trustee about how you are feeling.

I wouldn’t just stop paying the Trust Deed as it will only cause problems.

An important distinction here in David's post for everyone else reading.

This is one firm's procedure (and probably very similar to other firm's procedures) for customers who are failing to cooperate with meeting their obligations without anything significant changing with their financial position.

Much more flexibility, patience, and support will generally be extended to work together with a client who simply cannot maintain their payments because something has changed financially, like redundancy for example.

Thank u David and TDA for information, I defo wouldn't stop making payments it would only cause problems.

Thanks TDA. I should have said that we only do what I said as an absolute last resort when it comes to collecting payments from a client and they are not co-operating, responding to letters, emails, phone calls etc.

I’m sure if you speak with your Trustee and even arrange a meeting to discuss how you are feeling they will listen to you and review things.

As I’ve said communication is key when it comes to a Trust Deed or any option.

Thanks for the advice, your right I need to speak to trustee.