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Scottish Trust Deed Forum
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Topic starter
15/11/2011 1:13 pm
When I set up my trust deed a year ago, I was in a childcare voucher scheme at work whereby a maximum of £243 could be taken from my gross salary before tax was taken from it and paid directly to my childcare provider. My ex and the kids have now relocated overseas so the £243 is now paid to me - though is worth less as tax is now applied before I get it as part of my net salary. As the kids are now overseas they have school fees and childcare costs that have to be met. My ex is on a good salary so only wants what I was contributing towards childcare here to be given to her to assist with the costs over there.
My annual review is up and I have included a letter as such with my form and payslips/bank statement explaining the above. I remember saying to my IP at the time that I would perhaps have more to pay into the trust deed once my child left nursery but he said I would probably not be able to as I would have other childcare costs to consider.
This now being the case, will money I give to my ex for school fees and childcare be taken into account? My net pay looks better but that is only because the childcare vouchers came out at the start of the TD, and I now still pay that money towards childcare albeit in a different manner. Would they compare my current payslip to the ones they took copies of to see the childcare voucher element of them? My pay has been frozen, like most people's, since the TD was set up a year ago and the tax credits I was claiming to pay for some of the childcare and were taken account of as part of my income have obviously stopped as well so I am no better off than I was.
Terrified they will want to increase my payments by the difference in my bottom line meaning I won't be able to afford flights to see the kids in the school holidays!
Any advice/experience very welcome....
Glad that's over with....
15/11/2011 1:45 pm
Welcome to the forum upstream.
When your trust deed firm review your circumstances they will seek to take into account all of the changes to both your income and your expenditure.
As things have changed significantly for you I'm sure they'll want to look at things closely to make sure your trust deed continues to be manageable for you and fair to your creditors.
It's understandable that you will have expenses connected to your children wherever they currently reside. I'd be hopeful that your trust deed provider will be open to look at this in a reasonable way. I'm sure they'll have plenty of clients already that make contributions for the benefit of their children that spend most of their time living elsewhere.
I think it's a good thing that you have sent a letter of explanation about how and why your circumstances have changed. At this point you may wish to call them to further explain the detail of the situation, or to await their feedback on the review and then take things from there.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
15/11/2011 2:10 pm
Thanks for the reply. On a related matter, my ex and I had some joint debts that were part of our individual trust deeds. The TD's showed responsibility for the full amount each. It was explained to us at the time that this was because the debt would be settled from at least one of us if the other one's TD failed - and that the creditors would obviously get more if we both completed the TD's.
However, as she has relocated overseas and has no intention of coming back she has taken it upon herself to stop paying into her trust deed. As they were separate trust deeds, does this mean I will be protected from any potential fallout as long as I continue to maintain mine?
Glad that's over with....
15/11/2011 2:17 pm
Hi upstream.
You are correct. When your trust deed responsibilities are complete and you are discharged these debts will no longer exist for you.
If your ex-wife has ceased paying her trust deed she may be sequestrated, or more likely be discharged from the trust deed but still with her debts. The joint debt creditors would then be entitled to seek full payment of the balances on your joint accounts from her alone.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
