Her income (including from benefits) would be used to ensure she pays her share of household expenses. She shouldnt be paying anything towards your debts.

Paul

Welcome to Trust-Deed.co.uk kevin84.

Paul is correct. A change in household circumstances might affect your monthly payment in the future.

Given the major drop in income is £100 affordable?

Have you been advised that there will be any extension to your trust deed given that your monthly payment has been reduced?

Hi kevin84 and welcome.

It really comes down to affordability and if you feel that with the change in your family circumstances you can afford to maintain a payment of £135 per month for 4 years.

If you feel that you cannot afford to maintain a reasonable payment to your Trust Deed which your Trustee is prepared to accept then unfortunately your Trust Deed would not be able to continue and complete. In this scenario you may be released from your Trust Deed but not you debts and an option would be Sequestration (bankruptcy) to clear your debts.

Sequestration isn't as bad as you would think and can be very straight forward depending on your circumstances.

The first thing I would suggest is contacting you case manager and speaking to them about your situation.

Thx everyone for the info 🙂

Was paying £135 a month when the wife was working but went down to £100 when she went off!! We ar finding it had we even looked for a cheeper flat but we stay in a village wher the average rent is 900 a month 🙁 this month all the bill ar payed and we got a food shop for the first time in months got £100 for the month but that will go on the little one just feel so lost and we feel stuck!!

Oh and yeah thay had extended my trust deed to 4 years..

It does sound like you would be unable to support your contributions for the next 4 years under a Trust Deed.

Ultimately if your unable to support any payment Sequestration may be the only option. Your monthly payment can be reassessed and set at a more manageable level. This would be a payment for a period of 3 years.

You would need the co-operation of your Trustee to release you from your Trust Deed in order that you could go down the route of Sequestration. The best thing you can do is give your case manager a call. They should be able to help and give you advice on what to do next with regards to your Trust Deed.

Hi again 🙂 got some good news the wife and I have found out we can get some tax cred whitch will help us a lot! Just wondering if that will put up the amount I pay to my trust deed???

That's some positive news and couldn't have came at a better time for you Kevin.

It's still a question if you can afford to pay your original £135 per month or not.

If following a financial review, it appears that all you can afford is your £135 per month then this is all that you would pay. If it's deemed that you cannot afford to pay your £135 even with the addition of the tax credits then you may have to consider Sequestration.

You really need to contact your Trustee and speak with them regarding the change in your circumstances.