Can you get a trust deed twice?
It is possible to get another trust deed, even if you’ve had one before, but you must have been discharged from the previous trust deed before you enter into a new one.
Can a trust deed be revoked?
You cannot cancel a trust deed once you’ve entered into it, but there is some flexibility if you’re having difficulty keeping up with payments.
The trustee may agree to
- a payment break, on a temporary basis
- extending the term of your trust deed
- lowering payments, if the term has been extended
We always recommend speaking to your trustee if you’re struggling to make payments.
If you still find you can’t make the payments to your trust deed, the trust deed can be terminated. This will mean you’re no longer protected from action by your creditors to reclaim what you owe them.
In certain circumstances, your trustee could apply to make you bankrupt, if they believe this would be in the best interests of your creditors.
Can an accountant prepare a trust deed?
An accountant can prepare a trust deed for you, but only if they’re qualified (as a trustee). You will need to check this with your accountant.
What restrictions will I be under if I’m on a trust deed?
There are certain restrictions you’ll have to abide by while you’re on a trust deed. You must:
- Tell the lender about your trust deed if you apply to borrow more than £2,000, either in your own name or jointly with someone else
- Make sure you co-operate with your trustee. You can’t refuse to do so
- Let your trustee know if your situation changes