Hi marieh38.

It is always a very tricky situation, but one that should really have been identified as something likely to happen so could then have been factored in when you were looking at your options a year ago.

Certainly if you can no longer afford to make any payments then it there is a high chance that your Trust Deed could fail I'm afraid. At the end of the day, creditors are going to be receiving far less than originally promised, if anything, if the Trust Deed is allowed to continue.

Did your daughter leave home or is she still living with you whilst studying? If she left, have your outgoings not reduced too? If she is still there, could she not contribute to the household?

I told the person when they came to my house that my income was going to change but the never discussed this my daughter is still at home she only recieves a bursary and student loan and she needs to buy all her own text books which dome are nearly 70 pound a book so dont feel i can reslly ask her to contribute .

Hello Marieh38.

This really should have been considered at the start given if you raised the matter at the time.

It might have resulted in the adviser telling you that a trust deed wasn't a suitable option if it had been fully considered.

It looks like you're going to need to work with your trustee to assess where this will all go from here.

I'd strongly advise you not to borrow to make your next payment. It defeats the whole point of the exercise.

My payment us taken from my debit card as a recurring payment if i dont have the money in to pay it will they not just keep trying to take it hntil theres is money in my account .

Hi Marieh38.

You can contact your bank to cancel this type of payment if you want to.

There's no point in paying out money that you don't have.

Without knowing your full circumstances, it sounds like sequestration may have been more suitable for you, Marie. Speak to your trustee and explain the problem, hopefully you will end up with the right solution in the end

I have just recieved a letter regarding my annual review when i signed my trust deed my income and expenditure showed i had 214.00 disposable income that i could pay towards trust deed my income has reduced by roughly 270.00 per month but the letter that with the information provided i can still afford to make payments of 214.00 . I dont have any disposable income so how can they say i can still afford to make payments .

Hi Marieh38.

Ask them to provide you with the copy of your updated "income and expenditure" from which they've deduced that you can carry on making this payment.

You should be able to find the source of the error on there and point it out to your trustee.

they never sent me a income and expenditure form to fill just a copy of last years when i signed . Should i write to my trustee and write an icome and expenditure sheet as well x

The point of the annual review should be to find out whether your situation has changed significantly, not simply to send a copy of what you completed at the start. You should definitely advise them of the change and ask for a Current Status Report to complete (insolvency jargon!!)

Thanks will write out my new income and and expenditure and send it away asap .

Hi Marieh38,

As others have advised you don't want to go borrowing money to pay your Trust Deed payment. The whole point of the Trust Deed is to get out of debt, not for you to borrow again to try and pay it and doing this will only make your situation worse.

You can cancel the direct debit and recurring payment to your Trust Deed if you do not have the funds to pay this. Speak with your bank regarding this. Make sure you take down the time you called the bank and who you spoke with in the event that the bank don't cancel it. Also, try and give the bank as much notice as possible to cancel the continuous payment authority.

It's disappointing to hear that when you were discussing your circumstances the person you dealt with didn't really factor in the significant change that was going to take place. As Kevin has pointed out, Sequestration could have been a more suitable option although it's not everyone's first choice. A good knowledgeable advisor should have been able to put your mind at ease regarding this option.

It sounds like the letter you have received regarding your review form is just a standard letter and to me it sounds like no one has really reviewed anything by sending you out an old one.

Give your Trustee or relationship manager a call to make them aware of your change in circumstances. Tell them that you cannot afford to make the payments and will send in evidence of your change in circumstances. Write everything out, your income, your expenditure and send away your payslips and any other supporting evidence etc to show this. It's a good idea to take a copy of what you send away to them and also send it recorded delivery so you can ensure they receive it and it's not lost in the post.

Communication is key when it comes to things like this. Let us know how you get on.

Hi just a update to previous post i wrote out a new income and expenditure and sent in payslips bank statements and tax credit award letter . I recieved a letter this morning saying that they have come to the conclusion that i am currently unable to pay 214.00 therefore please make token payments and they will contact me in four months to reassess my circustances .

That's good for now, but I got the impression that your circumstances won't be changing back again in a hurry, so the risk is that your Trust Deed is just extended and extended again. It's only really a temporary solution - have they said what will happen to the term of your Trust Deed?