Hi loupenny

It's difficult to comment without a full review, but please to hear the comments from WA.

LILA will have the same effect as the Trust Deed on your credit file, but you will effectively start from day one again. There is no need to achieve a minimum dividend in LILA, so the review should be able to take account of all income/expenditure and from what you say, may result in a far reduced payment.

Mark

Hi loupenny.

How far into your trust deed are you?

It started in January this year

That's a long way to go then loupenny, and especially if you're really having to scrape a payment together every month.

Do you envisage that there will be any other changes in your circumstances in the near future?

my daughter will be starting nursery at end of the year which will be another expence which hasent yet been budgeted for in the trust deed.

I'm not sure that there's much difference to your credit record whether you carry on with the trust deed or become bankrupt loupenny. I'm not sure either that this is the most important factor.

It does sound as though you're sceptical that you could keep even the reduced trust deed payment going?

If your payment is reduced would your trust deed be extended to make up the difference?

Hi loupenny,

I'm sorry to hear that your financially struggling again due to the reduction in your benefits. I assume after entering the Trust Deed you felt a sense of relief and now this has happened.

In terms of the differences between the Trust Deed and LILA (Sequestration) then there aren't that many. LILA is route into bankruptcy (Sequestration) so you need to be aware that this is what you would be doing. As Mark pointed out as no minimum dividend has to be achieved for creditors then the payment and expenditure allowances can be taken into consideration in full and a payment set at a more manageable level and for 36 months.

If your already struggling at the moment then with the pending nursery fees to come at the end of the year it may be best that you consider sequestration as a more suitable option now due to the change in your circumstances. If you felt that you could continue with your Trust Deed but at a reduced level then this may extend the term of your Trust Deed beyond 36 months or the agreed timescale you have entered into with WA and you should be mindful of that.

The best thing to do is speak with WA to establish what options you have available based on the change in your circumstances. A member of their team follows the forum and I'm sure they will be along soon to help.

im just worried if anything even slightly changes in my circumstances then i wont be able to make the payments and it will leave me in a worse position. We would hopefully be looking to have another child in a year or so but finanically we could no aford it untill after the trust deed is complete.

Yes, the Trust Deed is being extended to cover the lower payment so would be around 4 years now.

i thought it may be best to just go throught LILA and get everything cleared and start a fresh but i wasnt sure if it would leave me in a worse position after its finished?

I'm not sure that it would leave you in a worse position loupenny.

Is there a particular fear that you have in that respect?

with regards to my credit for future and im not sure what the implications having a LILA in my history would be. Would i ever be able to get a mortgage or even a phone contract in future?

I don't see it having any difference to the trust deed. Both will be on your credit file for 6 years.

Mark

do you have to be on minimum wage to qualify for a LILA? I work part time but earn slightly more than minimum wage, would i still qualify?

I believe that it's minimum wage based upon a 40 hour working week loupenny.

If you're working part-time you may well qualify.

Presumably your trustee will have taken this into account when suggesting LILA to you?

yes they did say i qualified and i spoke to an independant debt advisor who said the same but it was when i read about the minimum wage i got a bit worried.