Hi manatbushk

Interest is frozen when a Trust Deed is signed.

Mark

That's an interesting point. I thought that TDs were similar to bankruptcy in terms of payments made to creditors.

So, if there is enough in the 'pot' to pay the costs and fees, plus 100% dividend to all creditors, you'd then be looking at paying interest on all of the debts.

Maybe TDs are different.

DAS definitely freezes the interest, fees and charges. And they get written off when the DAS is completed.

That's correct candlewick. Interest stops, but can be re-added by the trustee if a change of circumstances makes it affordable to pay it (often receipt of a windfall).

Some site visitors in the past have been confused by receiving letters and statements from their creditors, after they have signed a trust deed, where interest is apparently being added.

I'm not sure if this is what's happening to manatbushk, but think it might be.

Of course, the fact that a creditor indicates that the debt has grown doesn't mean it has grown. It's usually just a record keeping issue at their end.

It is a similar story with DAS too - if a DAS DPP fails then the creditor is entitled to add on any interest that would have become due as if the DPP never existed. Therefore some do continue to add interest just in case of this eventuality. If it completes successfully then they just have to write off the interest instead.