A trust deed is an effective way to repay your creditors without the need to enter sequestration, but what happens if your debts build up again further down the line? You are able to enter into more than one trust deed, but you must have been discharged from the first before you enter into a second arrangement.
How can I obtain agreement from creditors?
Your creditors may be reluctant to agree a second trust deed, particularly if the discharge date was relatively recent. Your chances of success depend on factors individual to yourself, including the history of repayment during the first trust deed, how much debt was written off at the end, and your current level of debt.
Much depends on the insolvency practitioner appointed to help you – for example, how much practical experience they have of negotiating with creditors under these circumstances.
If the Trustee can persuade creditors in your favour, and provide sufficient evidence that you are able to meet the monthly repayments, a second trust deed will operate in the same way as the first.
