Welcome to the forum bigj75.

Has something changed with your income or expenditure that has made your trust deed payment unaffordable?

Alternatively, do you think it was set at a level that you aren't able to keep up with from the start?

How long have you been in your trust deed?

thanks for getting back so quickly [:)]
it was set too high from the start but I was caught up in the fact that everything was going to be sorted out !?!
My 14 year old son was left money by an uncle which i have in a bank account(£16000.00) that is in my name but clearly states that it is in trust for my son.... can i declare myself bankrupt ?
I really am at my wits end with this and would appreciate any advice you can give me

I entered my trust deed in October last year

Thanks bigj75.

Could I just ask as well how much you're expected to pay to the trust deed each month, and also how much you realisitically believe that you could afford to pay?

It would be useful to know the level of debt that you have as well.

Sorry to answer your questions with more questions but it's helpful background information to have before providing you with further thoughts.

of course ,,, my initial payment was £200 for first 5 months then rising to £267 for 18 months then up to £340 per month, trust deed ending after 48 months !?! not 3 years as everybody else seems to be ,,, i think my total debt was no more than £30000.00
thanks again

Thanks again.

Last questions from me for now... related to assets this time.

Are you a homeowner and, if so, is there any equity in your home?

Also, do you own a car worth more than £3000?

Do you have any other significant assets?

hi , im a council tenant , no assets , 14 year old son and car due to go to car heaven ,probably worth £500 at the very most

ta much

Hi bigj75.

If you cannot keep up with the payments you originally agreed to, and this doesn't relate to a change of circumstances, there are a couple of possible outcomes.

The most likely is that the trust deed firm will cancel your trust deed, as they have already indicated that they might, and you will be left with your debts again.

Once that happens (if it happens) you will be free to go bankrupt if you choose to. As you have no major assets there seems to be little downside to this for you. You should however be aware that your Trustee will make an assessment of your income and outgoings and require you to pay what they believe that you can afford (if anything) for a period of three years.

If you'd prefer to avoid this you might want to try to negotiate a reduced trust deed payment in line with what you can afford. This might involve an extension to the trust deed though so that your creditors get what they originally expected and were promised.

Before you go bankrupt (and as soon as possible in case someone else chooses to make you bankrupt) I'd suggest that you take legal advice that the sum you are holding for your son will not be affected. It shouldn't be if everything has been done right before, but I'd personally still want to be sure.

For other readers I think bigj75's experience really underlines the importance of not going ahead with a trust deed unless you're comfortable that the payments are manageable. If they aren't the risk is that you'll simply be replacing one financial problem with another. I do appreciate that it's a very easy mistake to make when under pressure and a possible way out is offered though.

thanks for your help, i'll post on forum with the outcome of my mess

take care

Hi bigj75

Wow, you are having a hard time! I cannot understanmd why your Trust Deed is for 4 years if you have no assets. If the payments are killing you and the Trustee will not reduce them, then I would let the Trust Deed go to heaven with your car, and then apply for Sequestration. Keep in touch.

You should be aware though that if you apply for sequestration then your income and expenditure would still be assessed and you would be asked to contribute whatever is reasonably affordable for 3 years.

if you want to have some certainty about what you would have to pay in a sequestration it might be worthwhile nominating an insolvency practitioner to be your trustee and agreeing a payment before applying.

Kevin is right, you will most probably be required to make a payment if you are working. However, we can't tell you what that would be without doing an income & expenditure first. If you have disposable income of £100pm or more, then you could nominate a Trustee allowing you to know what your payments are going to be. Again this is reviewed throughout the period of your sequestration.
Why did your payments increase so much? Did you start to earn more money?

thanks to all , i dont mind paying something a month but cant afford what they ask for, they told me when my son reaches work age he can help me pay towards the large amount they ask for ! the amount they want is based on the original documents i sent , im not earning anymore if anything my working family tax credit is reduced from last year by £85 a month!Can I ask how do nominate a trustee,who would I contact ?

Hi Janice

I'm amazed at how this trust deed has been structured and am hoping it's not yet another Sold over the phone by a middleman company case where there was no meeting or back up confirmation.

If you are unable to pay and stop payments, you trustee is entitled to seek his discharge, but you get your debts back. Once this happens, you can speak with a company who will sit down face to face with you, look at all the options and see what best suits.

My warning to anyone who responds to a telephone call, TV advert, newspaper advert or whatever route is to insist on a face to face meeting and sign nothing till, more importantly, it has been fully explained in full details in writing to you looking at ALL options and then in your own time, read this before deciding. If in doubt Ask and ask again.

Mark