Breaching the terms of your trust deed

Entering into a Trust Deed is a serious and formal decision so you should ensure that you are able to keep up with monthly payments. With that said there are situations that arise and circumstance's change, but it is important to keep your trustee informed. There is a degree of flexibility, and if you are struggling to keep up with you Trust Deed repayments you may be able to extend the term of your Trust Deed and skip a couple of payments to help you get back on track.

If, however, you stop paying your Trust Deed and do not try to arrange an alternative payment plan, your trustee can petition for your bankruptcy. Sequestration is something that you should avoid. Bankruptcy has a stigma attached to it and debtors tend to try and stay clear of this route, so it is imperative that you have a close and transparent relationship with your Trustee.