Missed one payment? Act immediately.
Life changes happen. A missed payment can be caused by job loss, illness, reduced hours, rising bills, or unexpected family costs. What matters most is how quickly you tell your trustee.
What can happen if I miss payments?
Depending on the circumstances, your trustee may consider:
- A short-term payment break
- A reduced temporary contribution
- A full budget review
- An extension of the arrangement term
- Alternative options if affordability has changed long-term
What if my circumstances have permanently changed?
If your income has reduced or your costs have increased in a lasting way, the original payment may no longer be realistic. In that case, the Trust Deed may need to be restructured or reassessed.
Can a Trust Deed fail?
Yes. If payments are repeatedly missed, communication breaks down, or the arrangement is no longer sustainable, the Trust Deed can fail. This is why early action is so important.
What does a failed Trust Deed mean?
A failed Trust Deed can have serious consequences. Depending on the circumstances:
- Protections may fall away
- Creditors may resume collection activity
- Interest or charges may become relevant again in some situations
- You may still owe remaining balances
- Another formal solution may need to be considered
Could another solution be better if the Trust Deed is no longer affordable?
Possibly. If your situation has changed significantly, it may be appropriate to review whether another debt solution is now more suitable. That depends on your current income, assets, and overall debt position.
How to reduce the risk of failure
- Report income changes early
- Keep paperwork and payslips ready for reviews
- Do not take on unaffordable new commitments
- Review your household budget honestly
- Prioritise essential bills and your agreed payment plan
Bottom line
Missing a payment is a warning sign — not always the end. Many payment problems can be managed if you act quickly and communicate early. The biggest risk is silence.