Benefit deductions
 
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Benefit deductions

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 Lou
(@lou)
New Member
Joined: 14 years ago
Posts: 2
Topic starter  

Is anyone aware of what legislation the Department of Work and Pensions rely on in order to make deductions from the benefit of a debtor to repay Social Security debt when the person has a protected trust deed in place?


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Welcome to the forum Lou.

I'm not, but I'm sure Mark, Shona or Kevin may be able to provide further information on this question when they next visit.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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Shona Maxwell
(@shona-maxwell)
Honorable Member
Joined: 14 years ago
Posts: 634
 

Hi Lou, and welcome

Can I ask what kind of benefit has to be repaid?

Shona is not currently posting in the Trust-Deed.co.uk forum.


   
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Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 16 years ago
Posts: 4798
 

Hi Lou

On my way out, but normally social security administration act.

You may be looking at this from the wrong angle though. An overpayment does not fall like normal debts ie subject to consumer credit act etc and it is basically payment you were never entitled to receive.

I'll dig about a we'd bit later.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 16 years ago
Posts: 4253
 

Social fund loans too can still be deducted from benefits despite a protected trust deed. Not sure where I got this from though!

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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 Lou
(@lou)
New Member
Joined: 14 years ago
Posts: 2
Topic starter  

It's about a Social Fund loan.

I've found section 78 of the Social Security Administration Act and various case law on the subject. The case law does state that deductions can be made up until discharge but all the case law relates to bankruptcies, rather than Trust Deeds so I just wanted to make sure.

The only thing I can find where they cannot recover is Debt Relief Orders (still going through courts and applies only in England so won't affect us).


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Hi Lou.

A lot of the time protected trust deeds follow the same rules and procedures as sequestration.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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