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Scottish Trust Deed Forum
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Topic starter
06/02/2021 7:12 pm
Hi, I’m looking for some advice please. I’ve been paying into a trust deed for 3 years and due to ill health I am now on benefits. I’ve been on benefits since august which is my only income other than child maintenance and have continued to make payments but I’ve just found out benefit payments cannot be accepted as sole income and now I’m wondering what will happen? If I’m sequestrated what will happen to the payments I’ve ade and how long will it show on my credit file? Will I get a refund of the payments I’ve made since august?
Thank you
Rj40
08/02/2021 9:01 am
Hi Rj40
You are correct that no benefit can be paid from benefits however it can be taken into account when assessing your level of payment with private income. Child Maintenance is classed as private income. It would be unlikely a refund of payments would be agreed but there is no harm is asking your Trustee for a refund.
Sequestration is a last resort however your trustee will have to make a decision as to whether it is appropriate to allow your trustee to continue. The Accountant in Bankruptcy notes for guidance suggests that the Trust Deed should not fail if you had no control over your change of circumstances and that may allow the Trustee to discharge you at the end of the 48 month period. This is a rather grey error and would be a decision for your Trustee.
I would recommend reaching out to speak to your Trustee's office so work together with a way forward.
p
Recommended Partner & Trust Deed Expert - Ask me for help setting up a Scottish Trust Deed
12/02/2021 3:20 pm
Hi Rj40,
Sorry to hear about your ill-health and change in circumstances.
How much was your payment to the Trust Deed and how much child maintenance do you get? If your TD payment was £150 and you only get £100 CSA then technically that's all that could be taken as a payment to the TD. I'd ask your Trustee for a refund on the payments to see what they say.
Sequestration is nothing to be worried about or fear. If your Trustee decides your Trust Deed can't continue then this would be a good option to consider. If would remain on your credit file for a period of 6 years. If that happens the payments you have paid into your Trust Deed will cover the administration costs of the Trust Deed.
Have you discussed Sequestration with your Trustee? Like Paul suggests get in touch with them and let us know how you get on.
David is not currently posting in the Trust-Deed.co.uk forum
Topic starter
12/02/2021 3:56 pm
Hi, thank you both for replying and helping me. I’ve asked for a few weeks before I send in my income and expenditure as I’m going through an ugly court case with my ex and domestic abuse. I’ll speak to them about it, my payment was £300 and my child maintenance is £320. Thank you for your help.
15/02/2021 8:59 am
It sounds like you're having a really tough time Rj40.
Best wishes with everything over the coming few weeks.
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