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Topic starter
03/03/2022 6:20 am
Hi, my annual review was due in end of jan I had 5 days to submit bank statements and payslips . My income has reduced by £160 since last annual review and obviosly the cost of living is rising . My wage is 760 per month rent being 485 and 130
Council tax. The rest of my income is child tax credits, housing benefit . My payments for the last two years have been 205 per month , my trust deed is advising if I can’t pay that which I have clearly advised I am struggling big time to pay , I have went to citizens advice who had said my income shouldn’t be based on benefits . Basically after rent and council tax are paid I have 145 left . This does not include gas power food shopping etc which I thought were essentials and when I initially started a trust deed I was under the impression all these essential bills would be taken into consideration. My trust deed asked me what I could pay and I advised I would go with 145 however they have now came back and said if I do this my trust deed will be extended for 17 months. This is something I most definitely do not want, my question is if ur income reduces is it a requirement that your trust deed is extended if your payments are less. I would just like to add I notified the company 6 weeks ago that I was struggling and they still took 2 more payments and then contacted me about my debt. When I sought financial help initially I thought trust deed would be the perfect solution to have all my debts in one place and managed by someone else, not hearing from companies to take away stress , my initial conversation with the trust deed they advise all your essential bills will be taken into consideration , don’t worry we will work out a payment that is right for you based on your income , at that time i was still part time as I have three kids who I have to be there for after school . I feel these are not taken into consideration and since after notifying the company re my issues with payments and them taking 2 more payments of £205 off of me after this I sadly feel at this point it’s not about helping you get out of debt that is done the trust deed is protected which I am grateful for , however circumstances. Change over time and I feel it is about the company receiving their money each month that’s what point I am at just now.
03/03/2022 10:26 am
Hi Klyp. I can understand why you are feeling this way - it must be very difficult to cover your essential living costs and come up with the payments your trustee is seeking.
The short answer to your question is that your trustee could allow a reduction in your payments without extending the term of your Trust Deed if they wish to do so. The initial proposals made to creditors are really just an estimate of what you will be able to pay in over the course of the Trust Deed and if the reality turns out differently (for better or for worse) then the agreed payments should be amended accordingly.
If the Trustee is unwilling to do this without a lengthy extension to your Trust deed then I think it is worth challenging this decision. Whilst the Trustee has a lot of discretion about how they administer the trust Deed, they should nevertheless act in accordance with the formal guidance laid down by the Accountant in Bankruptcy. That guidance says that a change in circumstances should not normally be sufficient reason to refuse someone's discharge at the end of the 4-year term, which is essentially what they would be doing by insisting on the term being extended.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
03/03/2022 12:48 pm
Thank you very much for your advice and getting back to me. I haven’t heard from my trust deed company today , but I did ask the question yesterday that I wrote in this forum I will wait and see what they reply . I do apologise for the lengthy message I sent earlier i can’t sleep worrying about this. I will let you know I get on. Thanks again for your help .
04/03/2022 8:46 pm
Hi Klyp,
I hope that this works out in a way that you consider to be fair.
Please do let us know how the situation develops.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
06/03/2022 8:53 pm
Thank you will do , they have advised they have passed my queries to the insolvency practitioner and will hopefully have a response for me by Monday . Will keep you posted , thanks again
