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 Period between TD ending and discharge
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kscosmos
Just Joined

2 Posts

Posted - 02 July 2021 :  11:21:27  Show Profile  Reply with Quote
Hello,

I am 2 payments away from completing my Trust Deed - I received my Form 4 yesterday and am counting down the days until I can close this chapter and move on to adventures anew!

My understanding is that it can take 2-6 months between my final payment into my Trust Deed and me being officially discharged from the Trust Deed. I am unsure what this means in terms of my limitations, so I have a few questions:

- Is there any chance that I could have the Trust Deed renewed/extended during this period if I have already made all of my payments?

- Do I need to live as if I was still in a Trust Deed during this period (i.e. if I wanted to book a holiday and save towards it, can I?)

- Am I allowed to take on any form of credit prior to discharge? I'm thinking of getting a credit card with a low value so that I can start to rebuild for the future and also need to think about a vehicle as my one is getting quite old.

- If there are any changes in my circumstances (i.e. possible promotion at work with salary increase), do I need to make the Trustee aware if I have already completed all my payments but haven't yet been discharged?

Thanks for any advice you can provide!

TDA (Debt Adviser)
Trust Deed Expert



13775 Posts

Posted - 02 July 2021 :  11:41:19  Show Profile  Reply with Quote
Hi kscosmos and welcome to the forum,

I guess it's possible that your trust deed could be extended if you've failed to make your trustee aware about an increase in income, a reduction in bills/expenses, or a windfall that you've received. If you've kept your trustee informed, or there haven't been any significant changes, this shouldn't be anything to worry about.

You can save and spend your surplus income once your contributions have been completed.

I don't suppose there's anything to stop you from applying for credit if you believe the positives outweight the risks. You may be less likely to be succesful prior to your discharge, and the terms of any credit that is offered to you might be less attractive than they will be in the future.

You should make your trustee aware if you receive a windfall of some type before you get discharged. Whether your trustee will be obligated to collect that in for your creditors may depend upon the wording of your trust deed. I don't think there's any need to tell them about a change in income or bills if everyone is agreed that your monthly contributions have been completed.

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

Edited by - TDA (Debt Adviser) on 02 July 2021 11:41:36
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kscosmos
Just Joined

2 Posts

Posted - 02 July 2021 :  11:54:27  Show Profile  Reply with Quote
Thanks for the speedy response - clears my head a bit, thought I'd ask some theoretical questions to make sure I understood exactly what my position was during this time as it seemed kind of "one foot in, one foot out" and I didn't see any clear guidelines of what is and isn't allowed during this period of time.
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