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Alib107
New Member

6 Posts

Posted - 05 March 2019 :  21:40:03  Show Profile  Reply with Quote
Hi
Wonder if anyone can help me. My trust deed is due to be protected on the 7th March only a few more days to wait. I have a few questions.
Iíve just been awarded a backdated pay increase for the past year so am due 600 extra in my wages this month. I declared this before agreeing to the trust deed wasnít sure how much it was going to be. I know that I have to pay this into the trust deed but the only issue is Iím now being downgraded at work from next month and Iím going to lose £250 in my wages which wouldnít leave me anything to pay to the trust deed.
Iím really unsure what to do?
Will the trustee cancel my trust deed if my circumstances change? Or will they re look at my budget and tell me I need to make savings so I can continue to pay them their money?

TDA (Debt Adviser)
Trust Deed Expert



12917 Posts

Posted - 05 March 2019 :  22:23:28  Show Profile  Reply with Quote
Welcome to the forum Alib107.

You need to speak with your trustee urgently.

It sounds like the basis of your offer to creditors has been seriously undermined.

Accordingly, you need to be re-advised about what type of debt solution meets your needs and circumstances.

If you can, you should make this call first thing tomorrow.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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Sharon Toal
Trust Deed Expert



351 Posts

Posted - 06 March 2019 :  11:23:55  Show Profile  Reply with Quote
How did you get on ?

I agree with TDA Ė there has been a material change in your circumstances and I would contact your trustee for a review of your income and expenditure.

From your trustee point of view, it would be a disingenuous to both creditors and you to proceed in protecting the case as you may not be in a position to continue your agreed payment.

As TDA points out, depending on what you can afford to pay, the proposal may need to be amended and resent out to creditors.

Sharon is no longer posting in the forum.
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Swandog
Advanced Contributor

200 Posts

Posted - 06 March 2019 :  15:57:01  Show Profile  Reply with Quote
Hi Alib107 and welcome to the forum.

Thatís a really unfortunate change in circumstances and Iím sorry to hear that.

Iíd speak with your Trustee about the £600 as if you income will reduce by £250 per month you will need this money to live on.

As others have said itís going to be something that you will need to speak with your Trustee about as soon as possible to see what happens with the Trust Deed. Have you managed to do that yet?

Ultimately if you are unable to afford to make a suitable payment per month then the Trust Deed wonít work out and you may need to consider an alternative solution. This could be a Sequestration for example. Under this plan you only pay what you can afford to and if you canít afford to pay anything then you donít need to.

Do you own any assets i.e. house or car?
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Alib107
New Member

6 Posts

Posted - 06 March 2019 :  21:54:17  Show Profile  Reply with Quote
Thanks for the replies tried to get in touch with my trustee today but they never got back to me.
Did get told today that the downgrading has to go through the union so might not happen and that the person that told me had no right to do so. Spoke to union rep today and they said they would fight it but it could be months before it happens.
Unsure of what to do now as Iíve no new information to give to the trustee do I just wait and see what happens? Iíd told the trustee that our department was subject to a restructure before I decided on the trust deed option and they said it would be fine and my budget would be re assessed at the time and not to worry.
I rent my property and I have a car on finance that they have said I can keep as long as I continue to make the car payments

Edited by - Alib107 on 06 March 2019 21:55:51
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TDA (Debt Adviser)
Trust Deed Expert



12917 Posts

Posted - 06 March 2019 :  22:04:08  Show Profile  Reply with Quote
Hi Alib107.

That sounds a bit more positive.

It does sound like you don't have any specific information that your trustee could currently use.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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Swandog
Advanced Contributor

200 Posts

Posted - 07 March 2019 :  10:03:17  Show Profile  Reply with Quote
Hi Alib107,

It sounds like the downgrade and reduction in income might not happen and therefore you should be in a position to continue with the Trust Deed and make the payments for the time being. Advise your Trustee of this so that they can continue with the proposal and if the lenders accepted it apply to have it registered as a Protected Trust Deed.

Iíd have a good think about your budget in the event that your income does reduce. Would you have the ability to be careful with your spending to still afford to make the agreed payment per month? You donít want to cut back too much and it starts to have an impact on your quality of life.

Also, if your income did reduce could you consider a part time job or something to top up your income. Iím just giving you some options to think about.

If the worst does happen and your income reduces and you canít afford a suitable payment per month to the Trust Deed then you may need to look at Sequestration (Bankruptcy) as a way to clear your debts in a manageable timescale. If you could only afford to pay £20-£30 per month then this is all you would pay. If you couldnít afford a payment per month then you wouldnít be required to pay one. As you live in rented accommodation it shouldnít have an impact on this and as long as you continue with the car payments that should be fine too.

See how things play out with your job but you are doing the right thing looking into what options you have.

How much debt did you have before entering into the Trust Deed?
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Alib107
New Member

6 Posts

Posted - 07 March 2019 :  21:47:33  Show Profile  Reply with Quote
Thanks for the replies.
The budget that Iíve worked out gives me money for things that Iíve not been able to have for the past few years like clothing, haircuts, a decent food budget and petrol budget. Having used this budget for the past month Iíve found I actually have money for a change and Iíve been able to buy a decent weeks shopping. So if the worst happened then I could cut right back on the clothing, haircuts, food and petrol so I wouldnít really be any worse off than I was before I entered into the trust deed and would just make do to be able to keep making my payments.
My debt was £34k and I was paying £750 a month towards my debts but have had no life or money to do anything. This is the first time Iíve ever missed a payment and itís scary but there was no way I could keep those payments up. As I was taking cash from one to pay another and was nearly maxed out on everything.
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Alib107
New Member

6 Posts

Posted - 07 March 2019 :  21:52:48  Show Profile  Reply with Quote
Quick question the trust deed advert deadline is today. Should I be contacting my trustee tomorrow to find out if itís been protected or will the aib website be updated or do I get a letter or phone call to tell me?
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Swandog
Advanced Contributor

200 Posts

Posted - 08 March 2019 :  08:10:50  Show Profile  Reply with Quote
Hi Alib107,

Thatís really positive to hear that the Trust Deed in the short time you have been in it has made a different to your quality of life.

We hear all the time about people ďrobbing Peter to pay PaulĒ and juggling balances on credit cards to try and pay everyone. Paying out £750 per month is a lot and I would assume a lot of that will have only been servicing the interest payments.

When the 5 week period expires the Trustee then needs to apply to the AIB to have the Trust Deed registered as protected providing the lenders have accepted the proposal. The AIB will review the proposal and in particular your budget and providing they are happy will protect your Trust Deed. This normally takes approx. 3-5 days after the final day of the 5 weeks. It will probably be middle / end of next week that itís confirmed that your Trust Deed is protected.

You could give your Trustee a call today to find out of any lender objected to it. Normally the application to the AIB to protect the Trust Deed is just a formality.
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Alib107
New Member

6 Posts

Posted - 17 March 2019 :  08:32:52  Show Profile  Reply with Quote
Hi
Iíve made my first payment to my trust deed this week and my trust deed is now showing as protected which is such a relief. Iíve not had many phone calls and am only just starting to receive letters re non payment. Do I need to respond to these letters?
Thanks
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Billyboy1
Frequent Contributor

41 Posts

Posted - 17 March 2019 :  18:56:24  Show Profile  Reply with Quote
Hi there
The letters and calls will soon die down,they should not be contacting you when your in a protected trust deed only your trustee. Me personally send them to your trustee and ignore them

William hunter
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Sharon Toal
Trust Deed Expert



351 Posts

Posted - 18 March 2019 :  08:49:30  Show Profile  Reply with Quote
I agree Billyboy

Creditors often do send out letters during the process and I would always recommend passing them to your trustee in order that they can contact them to remind them of the position. More often than not, they send letters out due to their processes and it is a case that they haven't updated their system. I can fully appreciate this can be stressful and can cause unnecessary worry.

Creditors eventually update their system.


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