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Topic starter
06/09/2016 8:56 pm
Hi I am looking for some advice. Both my husband's and I's account went into arrears when he was made redundant. He found temporary work, which was better than being on the dole but also a lot less than his wages,so we reduced our payments for 5 months. We have never missed a payment on our TDs.
When he received a permanent position it was on par with the wages received from his job he was made redundant from so we were able to put the payments back up to the original amount.
Because we couldn't afford to pay the arrears, as we had no extra income, we had to agree to add this on to the end of the trust deed extending the last payment to Jan 2018. I have a grievance about this as I thought it all went on affordability and being made redundant was outwith our control. My circumstances have also changed and I am now in FT employment which of course have increased our contributions, but these are not being put to the arrears just to the creditors.
My husband now has the chance of earning quite a lot of overtime and I asked the question would the TD take all of this. After all he would be working long hours and would be sole destroying if we couldn't see some reward for working extra. I was advised from the TD that they would take half of the overtime and put this to the creditors and half to us and it was up to us if we wished to put this to the arrears. They did say that if we paid off the arrears then our last payment would be Sept 2017.
Would the Experts on this Forum think this is fair? I have made a complaint as I got very upset when asked the question some months ago when our last payment would be and got very conflicting information regarding my husband's TD and my own when it should have been a mirror image. Your comments and advice would be much appreciated.
Gillian McIlroy
07/09/2016 9:24 am
Hello gmac.
I think extensions (when regular payments are reduced or suspended) are pretty common. The trustee needs to balance your interests with those of your creditors.
The creditors agreed to the trust deed in the first place on the basis of the payment proposal made to them at the start.
I think we might be talking about two slightly different concepts here. You're correct that a payment into a trust deed should be based upon affordability - hence you were allowed to reduce your payment for a period. I don't think that this concept necessarily implies that this should always happen at the cost of your creditors though.
It's all really how your trustee sees it - there are occasions where circumstances beyond the control of a client might not subsequently disadvantage them.
The overtime opportunity certainly seems like one good way to reduce the remaining term. For older trust deeds, it's common for overtime to be split in this way so that there's some incentive to work extra hours. How your husband uses his share is up to him, with clearing money owed to the trust deed certainly being one option worth considering.
All in all however, it's scenarios like this where trustees have some discretion and have to use their judgement.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
07/09/2016 11:12 am
Hi TDA and experts?
Am I correct (or wrong) is thinking the rules changed and ALL overtime must go to the Trustee, whereas before there was some discretion?
Perhaps gmac's agreement falls under the original rules (depending on their date of signing), however, if they believe they have been given conflicting information before, my antennae went up in case they find themselves in a situation working overtime with no beneficial outcome to them (although there would be to creditors).
Should they be seeking anything like that in writing from the Trustee's office?
07/09/2016 11:16 am
You're correct Firewalker - though I think this might come under review in the future.
I'm assuming from the content of gmac's post that we're talking about a trust deed operating under the old system here. The trustee does appear to have stated that a split of any overtime earned would be acceptable. Some people might want to have that confirmed in writing.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
07/09/2016 7:56 pm
Thanks for your advice, we will make sure that we get this confirmed in writing.
Gillian McIlroy
