What If I Can’t Repay The Trust Deed?

When setting up your Trust Deed proposal it is important that you  calculate what you can reasonably afford to repay each month, and that these payments will be made on a regularly basis.

If your expenditure is expected to rise, for instance if you are coming to the end of a fixed term mortgage deal, or your income is expected to fall, for instance if you are a working couple and are likely to have children in the next five years, then it is unlikely you will be able to meet the payments in the future. You will normally need to be reasonably stable and have a decent level of income, as if you fail to keep up the monthly payments, your Trustee can apply for a variation in the deed but unless your creditors will accept an even lower monthly payment, you may still end up being petitioned for bankruptcy.

If you are in a Trust Deed and you are unable to make a payment then the most important thing is to make your Trustee aware immediately. If you don’t think you can keep up payments for the full term then you need to ask yourself is a Trust Deed the right solution for me?

On the other hand, if you get a wind fall of £200 or more, you are obliged to inform the Trustee.