diff --git a/lightningd/channel.c b/lightningd/channel.c
index b835964b1..238a90ff8 100644
--- a/lightningd/channel.c
+++ b/lightningd/channel.c
@@ -51,22 +51,22 @@ static void destroy_channel(struct channel *channel)
 	channel_set_owner(channel, NULL);
 
 	list_del_from(&channel->peer->channels, &channel->list);
-
-	/* Last one out frees the peer */
-	if (list_empty(&channel->peer->channels))
-		tal_free(channel->peer);
 }
 
 /* This lets us give a more detailed error than just a destructor. */
 void delete_channel(struct channel *channel, const char *why)
 {
+	struct peer *peer = channel->peer;
 	if (channel->opening_cmd) {
 		command_fail(channel->opening_cmd, "%s", why);
 		channel->opening_cmd = NULL;
 	}
-	wallet_channel_delete(channel->peer->ld->wallet, channel->dbid,
-			      channel->peer->dbid);
+	wallet_channel_delete(channel->peer->ld->wallet, channel->dbid);
 	tal_free(channel);
+
+	/* Last one out frees the peer */
+	if (list_empty(&peer->channels))
+		delete_peer(peer);
 }
 
 /* FIXME: We have no business knowing this! */
diff --git a/lightningd/channel.h b/lightningd/channel.h
index 5a68424c7..36778db39 100644
--- a/lightningd/channel.h
+++ b/lightningd/channel.h
@@ -86,7 +86,9 @@ struct channel {
 };
 
 struct channel *new_channel(struct peer *peer, u64 dbid, u32 first_blocknum);
-/* This lets us give a more detailed error than just a destructor. */
+
+/* This lets us give a more detailed error than just a destructor, and
+ * deletes from db. */
 void delete_channel(struct channel *channel, const char *why);
 
 const char *channel_state_name(const struct channel *channel);
diff --git a/lightningd/lightningd.c b/lightningd/lightningd.c
index be37a95c2..2b3ee7a9e 100644
--- a/lightningd/lightningd.c
+++ b/lightningd/lightningd.c
@@ -200,16 +200,16 @@ static void shutdown_subdaemons(struct lightningd *ld)
 	free_htlcs(ld, NULL);
 
 	while ((p = list_top(&ld->peers, struct peer, list)) != NULL) {
-		struct channel *c, *next;
-
-		/* Careful: deleting last channel frees p! */
-		do {
-			c = list_top(&p->channels, struct channel, list);
-			next = list_next(&p->channels, c, list);
+		struct channel *c;
 
+		while ((c = list_top(&p->channels, struct channel, list))
+		       != NULL) {
+			/* Removes itself from list as we free it */
 			tal_free(c);
-			c = next;
-		} while (c);
+		}
+
+		/* Removes itself from list as we free it */
+		tal_free(p);
 	}
 	db_commit_transaction(ld->wallet->db);
 }
diff --git a/lightningd/peer_control.c b/lightningd/peer_control.c
index a2178b55b..a4ee0accc 100644
--- a/lightningd/peer_control.c
+++ b/lightningd/peer_control.c
@@ -120,6 +120,13 @@ struct peer *new_peer(struct lightningd *ld, u64 dbid,
 	return peer;
 }
 
+void delete_peer(struct peer *peer)
+{
+	assert(list_empty(&peer->channels));
+	wallet_peer_delete(peer->ld->wallet, peer->dbid);
+	tal_free(peer);
+}
+
 struct peer *find_peer_by_dbid(struct lightningd *ld, u64 dbid)
 {
 	struct peer *p;
diff --git a/lightningd/peer_control.h b/lightningd/peer_control.h
index c29815bfc..fd9045e38 100644
--- a/lightningd/peer_control.h
+++ b/lightningd/peer_control.h
@@ -50,6 +50,9 @@ struct peer *new_peer(struct lightningd *ld, u64 dbid,
 		      const struct pubkey *id,
 		      const struct wireaddr *addr);
 
+/* Also removes from db. */
+void delete_peer(struct peer *peer);
+
 struct peer *peer_by_id(struct lightningd *ld, const struct pubkey *id);
 struct peer *peer_from_json(struct lightningd *ld,
 			    const char *buffer,
diff --git a/wallet/test/run-wallet.c b/wallet/test/run-wallet.c
index aaed66c19..618bd3755 100644
--- a/wallet/test/run-wallet.c
+++ b/wallet/test/run-wallet.c
@@ -887,6 +887,7 @@ static bool test_channel_crud(struct lightningd *ld, const tal_t *ctx)
 	CHECK_MSG(!wallet_err,
 		  tal_fmt(w, "Load from DB: %s", wallet_err));
 	CHECK_MSG(channelseq(&c1, c2), "Compare loaded with saved (v1)");
+	tal_free(c2);
 
 	/* We just inserted them into an empty DB so this must be 1 */
 	CHECK(c1.dbid == 1);
@@ -902,6 +903,7 @@ static bool test_channel_crud(struct lightningd *ld, const tal_t *ctx)
 	CHECK_MSG(!wallet_err,
 		  tal_fmt(w, "Insert into DB: %s", wallet_err));
 	CHECK_MSG(channelseq(&c1, c2), "Compare loaded with saved (v2)");
+	tal_free(c2);
 
 	/* Updates should not result in new ids */
 	CHECK(c1.dbid == 1);
@@ -918,6 +920,7 @@ static bool test_channel_crud(struct lightningd *ld, const tal_t *ctx)
 	CHECK_MSG(!wallet_err,
 		  tal_fmt(w, "Insert into DB: %s", wallet_err));
 	CHECK_MSG(channelseq(&c1, c2), "Compare loaded with saved (v3)");
+	tal_free(c2);
 
 	/* Variant 4: update with funding_tx_id */
 	c1.funding_txid = hash;
@@ -927,6 +930,7 @@ static bool test_channel_crud(struct lightningd *ld, const tal_t *ctx)
 	CHECK_MSG(!wallet_err,
 		  tal_fmt(w, "Insert into DB: %s", wallet_err));
 	CHECK_MSG(channelseq(&c1, c2), "Compare loaded with saved (v4)");
+	tal_free(c2);
 
 	/* Variant 5: update with channel_info */
 	c1.channel_info = &ci;
@@ -936,6 +940,7 @@ static bool test_channel_crud(struct lightningd *ld, const tal_t *ctx)
 	CHECK_MSG(!wallet_err,
 		  tal_fmt(w, "Insert into DB: %s", wallet_err));
 	CHECK_MSG(channelseq(&c1, c2), "Compare loaded with saved (v5)");
+	tal_free(c2);
 
 	/* Variant 6: update with last_commit_sent */
 	c1.last_sent_commit = &last_commit;
@@ -945,6 +950,7 @@ static bool test_channel_crud(struct lightningd *ld, const tal_t *ctx)
 	CHECK_MSG(!wallet_err,
 		  tal_fmt(w, "Insert into DB: %s", wallet_err));
 	CHECK_MSG(channelseq(&c1, c2), "Compare loaded with saved (v6)");
+	tal_free(c2);
 
 	/* Variant 7: update with last_tx (taken from BOLT #3) */
 	c1.last_tx = bitcoin_tx_from_hex(w, "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", strlen("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"));
@@ -955,6 +961,7 @@ static bool test_channel_crud(struct lightningd *ld, const tal_t *ctx)
 	CHECK_MSG(!wallet_err,
 		  tal_fmt(w, "Insert into DB: %s", wallet_err));
 	CHECK_MSG(channelseq(&c1, c2), "Compare loaded with saved (v7)");
+	tal_free(c2);
 
 	/* Variant 8: update and add remote_shutdown_scriptpubkey */
 	c1.remote_shutdown_scriptpubkey = scriptpubkey;
@@ -965,10 +972,13 @@ static bool test_channel_crud(struct lightningd *ld, const tal_t *ctx)
 	CHECK_MSG(!wallet_err,
 		  tal_fmt(w, "Insert into DB: %s", wallet_err));
 	CHECK_MSG(channelseq(&c1, c2), "Compare loaded with saved (v8)");
+	tal_free(c2);
 
 	db_commit_transaction(w->db);
 	CHECK(!wallet_err);
 	tal_free(w);
+	/* Normally freed by destroy_channel, but we don't call that */
+	tal_free(p);
 	return true;
 }
 
diff --git a/wallet/wallet.c b/wallet/wallet.c
index 7e18de02f..361d87845 100644
--- a/wallet/wallet.c
+++ b/wallet/wallet.c
@@ -884,21 +884,28 @@ void wallet_channel_save(struct wallet *w, struct channel *chan)
 	tal_free(tmpctx);
 }
 
-void wallet_channel_delete(struct wallet *w, u64 wallet_id, u64 peer_dbid)
+void wallet_channel_delete(struct wallet *w, u64 wallet_id)
 {
 	sqlite3_stmt *stmt;
-	/* FIXME: The line to clean up if we're last channel for peer would
-	 * be better as a trigger. */
 	stmt = db_prepare(w->db,
 			  "DELETE FROM channels WHERE id=?");
 	sqlite3_bind_int64(stmt, 1, wallet_id);
 	db_exec_prepared(w->db, stmt);
+}
 
-	stmt = db_prepare(w->db,
-			  "DELETE FROM peers WHERE id = ? AND NOT EXISTS"
-			  " (SELECT 1 FROM channels WHERE peer_id = ?)");
+void wallet_peer_delete(struct wallet *w, u64 peer_dbid)
+{
+	sqlite3_stmt *stmt;
+
+	/* Must not have any channels still using this peer */
+	stmt = db_query(__func__, w->db,
+			"SELECT * FROM channels WHERE peer_id = %"PRIu64,
+			peer_dbid);
+	assert(sqlite3_step(stmt) == SQLITE_DONE);
+	sqlite3_finalize(stmt);
+
+	stmt = db_prepare(w->db, "DELETE FROM peers WHERE id=?");
 	sqlite3_bind_int64(stmt, 1, peer_dbid);
-	sqlite3_bind_int64(stmt, 2, peer_dbid);
 	db_exec_prepared(w->db, stmt);
 }
 
diff --git a/wallet/wallet.h b/wallet/wallet.h
index 0fadfc58a..6120852b4 100644
--- a/wallet/wallet.h
+++ b/wallet/wallet.h
@@ -216,10 +216,13 @@ void wallet_channel_save(struct wallet *w, struct channel *chan);
 
 /**
  * wallet_channel_delete -- After resolving a channel, forget about it
- *
- * Deletes peer too if no more channels.
  */
-void wallet_channel_delete(struct wallet *w, u64 wallet_id, u64 peer_dbid);
+void wallet_channel_delete(struct wallet *w, u64 wallet_id);
+
+/**
+ * wallet_peer_delete -- After no more channels in peer, forget about it
+ */
+void wallet_peer_delete(struct wallet *w, u64 peer_dbid);
 
 /**
  * wallet_channel_config_save -- Upsert a channel_config into the database