Hi puggy1 and welcome to the trust deed forum.

You've made the decision that you feel is best for the future of your family which is your absolute right; nobody can stop you from making that decision.

However, the decision that you have made seems to make it unlikely that you'll be able to maintain the payments to your trust deed that you committed to. Will you be able to keep up with the payments that you agreed to at the time of signing?

If not, your Trustee might conclude that the trust deed is no longer appropriate to your means or to the interests of your creditors. I'd imagine that a likely scenario is that they consider resigning from your case if you cannot keep up the payments; a scenario that may mean you need to find a new way to address the debts.

The outcome is likely to be influenced by the fact that you chose to make this change to your circumstances. Where a change results from factors that are outside of your control (like redundancy for example) there is often scope for additional levels of flexibility from the Trustee.

This is speculation however. If you can carry on paying the trust deed I'm sure you'll be fine. If you cannot then you will need to communicate with your trust deed company about what will happen from this point as they have some discretion in this type of matter.

Hi,

Thank you for your quick response. I know I will be unable to meet the £90 pcm payment, I will struggle to afford much over the next few years but that is a decision I have made and will stick by.

She said she will call me back but I was worried as she didnt sound too co-operating and I understand fully that I have put myself in this position but I am now wondering what I will do about the debt.

Will legal action be taken against me as I have now "broke the agreement"

Kind Regards

Hi puggy1

I can understand your decision, but the Trustee might feel you could have waited until the end of your Trust Deed period, and feel you have not kept to the arrangement. As this was your choice, the Trustee may discharge himself from the Trust Deed, but not discharge you from your debts! This puts you back to where you were before you signed the Trust Deed. If this happens, you should speak to a money adviser as there may be alternative options now that your only income is benefit. See what your Trustee says first.

Alternatively your trustee could petition the court for you to be made bankrupt - though i think the scenario outlined by the others above is more likely.