This might be a silly question but if ur sequestrated or td can you still have your mobile phone contracts and pay ur car insurance via monthly direct debit?

Hi Lindsey,

Normally there isn't a problem with continuing with your mobile phone contract and car insurance.

If you pay your car insurance monthly you will probably take out a credit agreement for this. In some occasions people have had to shop around for car insurance because they have been refused the credit agreement to pay monthly. This is very rare though but something you will obviously need to be aware of.

With regards to a Trust Deed/Sequestration your life should really continue as normal as pingpong advised. There are a lot of worries but both plans really can be very straight forward.

My experience in both cases is yes

as long as the providers are not going be creditors involved in your

I have never had a problem getting house, car insurance. Some comparison websites as the question for house insurance have you or anyone in your house been made bankrupt. we answered yes and still got very competitive quotations, and been able to pay monthly (put it this way if you don't pay the cancel the policy so the risk is low)

My wife kept her phone all the way through and has a bank account too neither were included as creditors though

Thank you 🙂

Is it true that one advantage of a Trust Deed over Sequestration is that there would not be a possibility of a Bankruptcy Restriction Order/Undertaking to be worried about?

Hi Grace.

I suppose that's true, but for most people entering sequestration a BRO or BRU will not be something they'll be concerned will apply to them.

We have no DD option on the bank account so it has been difficult for switching utilities etc, BT, Scottish Power want DD
we have been able to stay on contracts with T Mobile and upgrade when due etc but credit checking for any other network would be an issue.
So, essentially we can still function normally but with a limited choice on some things.

Hi Lindsey, I wouldn't worry too much about mobiles, insurance etc. Energy accounts are credit accounts and I have moved mine 4 times since in my TD.

On direct debits, there are a couple of good basic bank accounts out there that will give you a debit card and direct debit facility. Coop and Barclays seem to be the best. I opened by Coop account the day I entered by TD.

I know it's a bit daunting but would honestly recommend you get in touch with one of the guys to discuss your situation in more detail. You will probably find you have more money spare left over than you think if you enter the Trust Deed. They deduct expenses of ordinary living off of your income and then simply take what money is left to contribute towards the deed. It will surprise you the allowances that are made and it all adds up - perfect example is that there is an allowance made for dry cleaning costs. I was surprised an allowance was made for pay TV but it is an ordinary expense these days.

You will feel much better if you contact one of the guys and talk it through properly. It literally will feel like a weight has been lifted.

Good luck with whatever you decide[:)]

The only way to make an informed decision would be to sit down with an advisor and run through all of the options, ensuring each question is answered. That was you have a clear guide to waht works, what doesn't work and the pros and cons of each.

Mark

A BRO/BRU appears to usually only apply if you have been very naughty with money, gambling excessive amounts or acting fraudulently in anyway.

That's correct kdog7.

The AIB regularly publishes a list of Bankruptcy Restriction Undertakings (where the individual is not named) and Bankruptcy Restriction Orders (where they are named).

This article includes further information about in what types of circumstances they might be used:

https://www.trust-deed.co.uk/bankruptcy-sequestration.html