Notifications
Clear all
Scottish Trust Deed Forum
6
Posts
4
Users
0
Reactions
2,748
Views
Topic starter
09/08/2015 10:03 pm
apologies if this queries appears elsewhere on the forum.
My stepson has a TD and final payment is due in September 2015. However, he recently received a letter from his TD company saying that he was in arrears of about £4k. He thinks this is because he has earned overtime and has been given a number of bonuses over the last 2 years. His TD states that he should be paying 50% of any overtime earned and 100% of any bonuses.
What will happen if he does not pay this arrears? Would it be worth negotiating with TD company and offering to pay part of this? Can his TD be extended to collect the arrears?
Thanks in advance
10/08/2015 9:18 am
Welcome to the forum Concernedstepmum.
If your stepson fails to pay the money that's due I'd imagine that the trustee will not discharge him from the trust deed.
Usually no discharge would follow until he'd fully paid what's due under the agreement that he made with his creditors. Extensions can and do happen.
You could try to negotiate with the trustee, but my guess is that the trustee will insist that your stepson completes the obligations that he voluntarily entered into and which his creditors agreed to.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
10/08/2015 9:53 am
Hi Concernedstepmum and welcome to the fourm,
Like TDA has advised if there was an agreement at the outset of the Trust Deed regarding any bonus or overtime earned and your stepson failed to pay over any bonus or overtime then the Trustee could refuse to discharge him and extend the Trust Deed to ingather the funds.
How much is your stepson paying per month to the Trust Deed? I'm trying to gauge how long his Trust Deed would need to be extended by for him to pay the £4,000.
It's worth asking the Trustee if they would be prepared to accept a lump sum payment in respect of the £4,000. They can only say no.
David is not currently posting in the Trust-Deed.co.uk forum
10/08/2015 10:20 am
I would probably start by asking for a breakdown of the figure as it would average around £110 per month for the duration of the Trust Deed. It's also strange that the bonus/overtime payments were not picked up during any of the reviews and dealt with at that time.
An extension of the Trust Deed is always possible to pick up arrears, however as David says, the time period and amount would need to be reasonable.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
10/08/2015 6:12 pm
thanks for your words of wisdom.
My stepson is only paying around £130 per month to his TD - which started in July 2012 but has been extended for 3 months after he negotiated a 3 month holiday.
He says he has not been asked for additional payments at review points but this seems strange as I understood the review points were in place to ensure monthly payments were appropriate and to catch any additional income such as this.
10/08/2015 6:28 pm
It certainly seems strange.
The purpose of the review is to check for bonuses/overtime and to adjust the contribution if required. You should certainly ask why the matter was not addressed at the time of the review, rather than leaving things until the end.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
