Discharge of the trustee and the client
A third way to deal with a non-performing trust deed is for the trustee to discharge the client and themself if they believe that the client has tried their best to conform to the terms of the trust deed but has failed to complete the agreed 48 payments.
The trustee must inform the creditors and ask their permission to discharge the client. If all creditors and the AiB agree, the trustee can discharge the client, then themself and the period of the trust deed is over.
The AiB guidance for trustees states:
1 PTD protocol, para 8.1, ‘It would not be appropriate to refuse to discharge a client because of circumstances beyond their control, such as a change of circumstances which prevents them from paying any contribution payable under section 168 of the Act, or if an asset realises an amount less than originally estimated by the trustee.’
A client in this situation should explain to the trustee that they cannot keep up the agreed payments, that they have tried their best to do so and that if the situation is unlikely to improve. They should ask the trustee to discharge them and bring the trust deed to an end.