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Topic starter
25/03/2009 11:36 am
Hi,
I've got another Trust Deed question for the experts....
When my TD was set up, my IP noted that I have been paid an annual bonus by employer for every year I've worked there. I was informed that because this had been a regular occurrance, it would need to be factored in to my annual salary figure.
Essentially it has been assumed that I'll receive a bonus of ?ú1200 each year, and in light of that, ?ú100 has been added to my monthly net income figure in order to factor it in.
Would I therefore be correct in thinking that if I receive a bonus of ?ú1200 or less, that lump sum should be mine to hold on to, given that it has already been accounted for? Obviously if I received a bonus of more than ?ú1200, I would be required to surrender some of all of the excess money to the IP, and I am quite comfortable with that.
Given the current financial climate however, my expectation for a bonus this year is quite low - indeed I am not even sure if one will be paid at all. Given that the IP is assuming a bonus of at least ?ú1200 and my TD has been set up on that basis, what would happen in the event that I receive nothing at all?
I hope the above makes sense!
Thanks,
Ian.
25/03/2009 5:30 pm
Hi Ian,
Good question. First of all, if the bonus was added into your monthly figure then you are quite right - if you received a bonus of ?ú1200 it should be yours to keep.
If you received nothing then you would certainly have a good case for speaking to your trustee and suggesting that the level of your contributions should be reduced as your income is less than anticipated. Your trustee may agree this, or may seek the agreement of your creditors before allowing a reduction.
Hope this helps
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
26/03/2009 11:01 am
Thanks for that Kevin.
As it happens, I was informed about my bonus yesterday afternoon and I have been awarded more than the ?ú1200 that my IP had already factored in.
I've spoken with my IP, advised them of the situation and asked how they wish to proceed - I am due to hear back from them later today.
Hopefully they will agree that the original ?ú1200 is mine to hold on to, and that I will only have to surrender some or all of the excess.
On that point actually - are there any general rules of thumb when it comes to how much of an annual bonus must be given up for the purposes of a Trust Deed? I suspect probably not because every case will be different?
Topic starter
26/03/2009 12:05 pm
Update - IP have got back to me and confirmed that the ?ú1200 already factored into my calculation is sufficient, and I can therefore hold on to the entire bonus.
Happy day!
01/04/2009 9:39 am
Hi Ian,
Good to hear that you've been able to benefit from your hard work. It does seem sensible that mechanisms exist for those in trust deeds to be rewarded for extra work or performance (at least in part) otherwise there seems to be no incentive at all.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
