Your post raises more questions than answers right now.

It all depends what they mean by 'fraud'. If it's just the DWP definition of 'fraud', then the debts could go into a trust deed or bankruptcy, and be written off at the end. If it's fraud in a more 'legal' definition, then they won't get written off.

You really need to get that point cleared up first.

You might also want to challenge the amount that they say you owe. If you win that challenge, then you wouldn't need a trust deed or anything else.

Then there's the question of your income. Do you have any income other than benefits? Do you have assets? If you own your own house, is there much equity in it?

If you only receive benefits and have no assets, then bankruptcy would probably be more appropriate than a trust deed.

So, like I said, lots of questions - sorry![:I] And those are just the ones which came to mind straight away!

Welcome to the forum Backtosquareone.

Candlewick asks some great questions and makes some great points. Could you let us know a little more so we can try to help in more detail?

I wouldn't rush into anything right now. A 48 month trust deed may well not be the best option even if it is confirmed that this money is due.

I'm afraid to say that sums owed due to overpayment of benefits do not automatically discharge in a trust deed or bankruptcy - a position that was tested in court some time ago.

It may be that this will all have to be repaid - a DAS payment programme could be a suitable method for doing so but it is going to take you quite a while at the rate that you can afford.

Sorry not to have better news for you.

Is it permitted to enter a second trust deed so soon after discharge? Just wondering also if Backtosquareone had income other than benefits from which to fund the first?

Wouldn't these overpayments been included in the income that was used to pay into the previous trust deed?
If so, shouldn't the previous trustee have noticed that the initial wage part of the income was too high to be eligible for these 3 benefits?

Hi.

It's really up to creditors whether they'll allow a second trust deed to become protected. Each can take their own view based upon the circumstances.

I suppose a trustee might notice that there were overpayments being made, but I don't think it would necessarily be their responsibility to do so. The responsibility always falls upon the recipient to notify the appropriate bodies when circumstances change.

It is a moot point really whether a second trust deed could be signed. It could, but what is the point if the benefit overpayments are not necessarily discharged by it?

Kevin's posts sum it all up beautifully.

If the debt won't be written off in a trust deed or a bankruptcy, then there's no point in going down either of those routes.

You need to check that point very carefully. Before you do anything else.