Advice - Disability...
 
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Advice - Disability Benefits

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(@emsfoll)
New Member
Joined: 2 months ago
Posts: 1
Topic starter  

Hi there, this is my first post! 

 

I entered into my protected trust deed with Carrington Dean in October 2019. At the time I was 21 and I'd gotten myself into a fair amount of debt due to overspending. I bought my first house at 19 and this along with my then-undiagnosed ADHD and Autism, meant I'd soon become unable to pay everything each month. I definitely blame my ADHD for my spending habits and have since gotten better at managing my money, thanks to my diagnosis as well as the sheer embarrassment of being in an insolvency agreement at the age of 21! 

 

My debt level at the start of my PTD was £44k and by the end of it, I should have written off around 61%. When my PTD started, I was told I'd have extra time added on due the fact I had my mortgage, approx 12 months, as well as another 12 months added as I had a my car and my private numberplate. I was paying £176 per month from October 2019 until December 2021, I had a payment break in December 2021 as I'd changed jobs and my pay was less that month, then from January 2022 until October 2023, I was paying £354 per month. I'm now out of my mandatory 4 year term and I'm in the final 24 months (only 20 left now!) of paying for my mortgage and car part of the PTD at £176 per month again. 

 

Since being diagnosed with Autism and ADHD in November 2022, I'm in receipt of Adult Disability Payment each month and I get £514.60. I currently have £3,802 left to pay between May 2024 and December 2025. 

 

I haven't had an annual review done since October 2022 with my last review being due in October 2023 but I never heard anything from Carrington Dean about this. I assumed I wasn't due one since my initial and mandatory 4 year term was over and I was now only paying back the extra due for my mortgage and car. Because of this, Carrington Dean don't know I am in receipt of this benefit and I know previously I've had to declare any excess income to them. 

 

I wondered, can I use my disability benefit to pay off my remaining months quicker? If so, how do I approach Carrington Dean to ask them and will they require me to do a full review of my income etc again? I don't know if I can be bothered with that! Haha 

 

Thank you!

Emma 


   
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 nm89
(@nm89)
Active Member
Joined: 9 months ago
Posts: 13
 

Hi Emsfoll,

The short answer is to double check the structure of your proposal and discuss with your Trustee.

In general terms, there should be no problem with you paying a lump sum or higher monthly amount to clear the additional payments quicker. This is because these arrangements are typically set out as a cash amount to your creditors in the Statement of Affairs, not as additional contribution periods. This is why you were able to drop back down to £176 at the end of the 4 year term.

In basic terms, your creditors will have likely been told you will pay approximately £4,200, in lieu of realising your assets. This was explained to you as 2 additional years' contributions.

There is no harm in contacting your Trustee and asking the theoretical question "If I can clear the remaining balance quicker, is that OK?"


   
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