Trust deed advice.

alron

Have been struggling keeping up payments on trust deed and thinking of giving up for bankruptcy. My problem is, though, that I have a credit card that, as I didn`t owe anything on it when I started the trust deed I omitted to mention. Have since foolishly fallen into the trap of using it.
Am terrified now that if I go down the bankruptcy route including this credit card in it, I will be in serious legal trouble?. Can anyone advise me if this is so?

Antoine_Roquentin

Depends on your Trustee but I'd say that most wouldn't sequestrate you just because you asked for it. From the Trustees point of view - ie in the best interest of the creditors - the best thing would be to say "games a bogie" and ask for their discharge. This would mean them handing back your debt to you.

As for spending on the credit card you've basically broken your agreement by taking on further credit. So again your Trustee can blow the whistle on you and hand you back your debt. Failing to tell the Trustee fully about your financial circumstances is a criminal offence.

Even if you were sequestrated the money from the Trust Deed contributions would be eaten up in fees or passed to the Trustee in sequestration and you would start again facing a three year contribution.