Occasional missed payments
One or two missed payments due to short-term circumstances (a temporary drop in hours, an unexpected bill) can normally be caught up. Your Trustee will contact you to discuss and can often agree an informal catch-up.
Some Trust Deeds have limited payment holidays built in as a mechanism for this. Even without a formal holiday, one or two months of catch-up is normally accommodated.
Sustained payment difficulties
If your circumstances have changed permanently (job loss, health change, family change), the Trustee may propose a variation. This involves formally adjusting the monthly payment amount, and can extend the total duration to make up for the reduction.
Variations require oversight from the Accountant in Bankruptcy in some cases, and communication with creditors, but they are a normal part of Trust Deed administration.
Trust Deed failure
Repeated missed payments with no engagement can lead to the Trust Deed failing. The Trustee may terminate the deed and the debts revert to unsecured, unprotected status.
In some cases the Trustee will petition for your sequestration at that point. This is not automatic but it is possible where the Trustee holds that power.
Failure means you lose the money already contributed, and the original debts (plus any accrued interest) can be pursued by creditors again.
Windfalls during a Trust Deed
If you receive a windfall — inheritance, gift, PPI refund, redundancy payment — you must inform the Trustee. Windfalls above a set threshold usually need to be paid into the deed.
Small windfalls (under £500 or thereabouts) may be retained. Larger amounts are usually paid in.