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Scottish Trust Deed Forum
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Topic starter
22/07/2018 12:33 am
I've recently been awarded Child tax credits for the tax year ending April 2018 as my household income fallped last year. The payment was made to my old bank account which has a balance included in the trust deed. The bank advised they could release the payment to me if the insolvency firm confirmed they had no interest in the payment however they have instructed the bank to make the payment to them directly and have informed me that the payment will be made to the trust deed as this was an income I did not have. I disputed that this is a child tax credit payment awarded for my children which should not be considered an income and the insolvency firm replied to say that as I was not in arrears with them and could afford my trust deed payments they would not be giving me access to this payment. I am finding it very difficult to accept, I have an appointment with CAB on 7th August but would appreciate any advice on the matter meantime. Thanks
23/07/2018 8:20 am
When your income is assessed, all income including benefits is included to work out your level of disposable income however the trustee is unable to take any funds derived from benefits including tax credits.
To speed matters along I would recommend contacting the trustee to remind them of (section 187(1) of the Social Security Administration Act 1992 and the Tax credits Act 2002.
If you are unable to obtain a suitable response, I would recommend speaking to the Accountant in Bankruptcy - they will be able to resolve the issue by contacting the trustee directly.
The accountant in bankruptcy supervises trustees in trust deeds and sequestrations.
Let me know how you get on.
Sharon is no longer posting in the forum.
23/07/2018 9:15 am
Welcome to the forum Dorarose.
Could you please let us know how much you earn each month and how much your trust deed monthly contribution is?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
23/07/2018 12:17 pm
Receiving this higher level of tax credits could mean that you should have been able to afford a higher contribution from any earned income you have. As such, they could argue that it is not actually benefit income that these funds represent.
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