Expenditure review
 
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Expenditure review

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(@bigtoon)
New Member
Joined: 13 years ago
Posts: 2
Topic starter  

After two years I have just received a letter asking me to provide income details and expenditure regarding my trust deed.

It also asks if I have received any sum of money, goods or property etc. during my time in the trust deed and I must declare this to my trustee.

When my Mum died I was left some money but I used this for home improvements and i didn't declare it. What should I do?

I also spent a bonus my work gave which was a one off payment.

Regards,


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Welcome to the trust deed forum bigtoon.

We can only advise you to answer the questions openly and honestly.

There may be some issues to resolve after you have done this. I'm afraid any inheritance you received will likely be considered to be acquirenda (a windfall) that should have been handed over to help repay your creditors. Effectively, the money may not have been yours to spend. In terms of a bonus payment from work, the chances are that some or all of it will also have been due to your trust deed.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 16 years ago
Posts: 4253
 

You are legally bound to declare these types of things, bigtoon. The most likely outcome is that your trust deed is extended so that they can gather in extra funds to cover the amount of the lump sums (or a proportion at least)

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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(@jon-wildman)
Active Member
Joined: 13 years ago
Posts: 9
 

How did you have/ keep an overdraft on a Trust Deed? I cleared mine and was not allowed to get another.
JW


   
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(@pamjo)
Reputable Member
Joined: 14 years ago
Posts: 355
 

I was surprised to see that part of your post too, doesn't the bank account provider have to be advised re your insolvency and overdraft balances included in the arrangement at the outset?


   
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(@pamjo)
Reputable Member
Joined: 14 years ago
Posts: 355
 

Bigtoon,
I was surprised because if you had a bonus, the companies owed money are in agreement with your plan, in part due to the expectation that new money can be shared among all when you receive it. In the overdraft being paid off, the other creditors had nothing and could argue they should have had. if they were told of course. I'm not sure what mechanisms there are for that.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Hi all.

A trust deed itself doesn't actually prevent you from using a new overdraft (or a facility you had at the start of a trust deed with a zero or credit balance). An overdraft that exists at the time of signing a trust deed should be included amongst the other creditors.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@upstream)
Reputable Member
Joined: 14 years ago
Posts: 251
 

I'm also surprised that it has taken 2 years to get a review. Aren't they normally at least annually, if not 6 monthly?

Glad that's over with....


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Hi bigtoon.

Did the overdraft exist (with a balance owed on it) at the time you signed your trust deed?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@plasticdaft)
Noble Member
Joined: 16 years ago
Posts: 1594
 

Bigtoon you are far from screwed,and the simplest way forward is to declare the extra income to your trustee.

How much did you get left by your Mum and did you know you were meant to declare it? Nobody on here will have a go at you,you have made a mistake but there is always a solution to any issues.

Which company are you with? I wonder why they have left it so long to do a review,mine were pretty strictly every 6 months.

Paul

Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.


   
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(@bigtoon)
New Member
Joined: 13 years ago
Posts: 2
Topic starter  

On my way to Glasgow this morning to meet my Trustee and carry out review after speaking with her yesterday.

She has put me at ease regarding my Mothers Pension and hopefully it will work out ok.

Thanks for all the advice and yes honesty is the best policy. I can't risk putting my kids under any more stress for the sake of a few £££

L


   
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(@plasticdaft)
Noble Member
Joined: 16 years ago
Posts: 1594
 

How did it go?

Paul

Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.


   
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