Hi mrsk

Are you in employment. I assume from your post that you are not and receiving benefit income. On this basis there should be no contribution paid and you should provide confirmation of your income and expenditure and benefits to the Trustee ( preferably recorded delivery )

The Trustee will possibly discharge himself from the trust deed although this would have the effect of handing you back your creditors. If you have minimal/no assets then sequestration may be the better option for you.

Mark

Welcome to the forum mrsk.

I'm sorry to hear of this situation and, in particular, that you've been unwell. Your health and wellbeing are by far the most important thing here and it's so important that you've reached out for medical help.

You cannot pay over money that you don't have. As has already been stated by Mark, if your solely reliant on benefit income no contribution is likely to be due (or affordable) at this time.

It's REALLY important that you write to your Trustee (perhaps personally to your trustee) to tell them about your current financial situation. I think that this will bring some relief for you once they're aware of the situation.

I'd suggest considering telling them about the medical help that you're receiving as well. Knowing that you've been experiencing these difficulties should help to ensure that some sensitivity is applied while you're struggling.

You mention that you're finding it hard to do this. If that's standing in the way perhaps you could find a friend, a member of your family or an adviser at your local CAB who could help you to put a letter together? Hopefully doing this will be a big part in lifting some of the weight from your shoulders.

The child benefit money is yours rather than your childrens. Obviously though it's paid over to help with the costs of bringing up children. That should be covered already by the "income and expenditure" used to calculate any payment due to your trust deed. As mentioned, if you only have benefit income no trust deed payment would normally be payable. You can pay it into a savings account if you wish, but that will just leave you with less money for all of your household costs which would probably cause more harm than good?

Hi Mark... Thank you so much for your reply.
I am receiving Income Support as well as Child Tax Credit, Housing Benefit and Child Benefits.

Are you saying that if I am in receipt of Income Support then I am not entitled to make a contribution?

Once I am handed back to all my creditors, who will sequestrate me?
(The only asset I have is a car which I use to get my children to school and back again, doctors and extra mural activities).

Thank you again for your reply.

Hi again mrsk.

I just posted some further information - I think we might have been writing at the same time.

Normally if you are only receiving benefit income you'd not be in a position to pay into a trust deed. It's very likely that your trustee will take this position once they're fully aware of your circumstances.

How much is your car worth do you think?

Thank you TDA for your reply... I have been emailing them and informing them of the struggles and medical help I have been seeking - They just want my income and expenses.

A family member asked me to ask them about all the payments I missed and what they totalled and if I could make a payment so that this would all be over and done with. I am awaiting their response.

In the meanwhile I will let them have my income and expenditure as well as my bank statements and find out what they say. I have asked a friend to assist me so we will get that done asap and I am sure it will be a weight lifted off my shoulders.

Thank you again for your reply, I really appreciate it.

I think we were writing at the same time AGAIN 🙂

I don't think my car is worth more then about £5,000 - If even?

I am not sure how to find that out actually.. I can do that, what are you thinking?

In trust deeds and sequestration your assets "vest" in your trustee. That means they may be required to release some value to help repay creditors (or at least to cover the costs of the arrangement).

In terms of cars there is a £3000 threshold. A car that you have a reasonable need for that is worth less than this would not have to be dealt with in this way.

If the car were worth more than that it could cause an issue if you were to go ahead with sequestration in the future. Best to know everything in advance I think.

There are quite a few resources online that will give you an indicative (and free) valuation of your vehicle.

Hi mrsk,

I'm sorry to read of the difficulties you have experienced since entering into the Trust Deed.

Once your Trustee is in receipt of your income and expenditure and your bank statements they will be in a position to make a decision on your case.

As others have said if your income is made up of benefits then you should not be asked to make a payment to your Trust Deed.

I'd be cautious about paying off all of your arrears to try and get the Trust Deed back on track with assistance from a family member. Based on your circumstances if your Trustee discharges your Trust Deed and provides you will all of your debts back then under a Sequestration you would not be required to make any payments.

With regards to your motor vehicle, any vehicle worth more than £3,000 is looked upon as an asset. Often in my experience people over value their vehicle. Pop onto the internet and have a look at parkers or wisebuyers to establish the value of your vehicle.

Try to remain positive! No one can force you to make a payment and no one is going to stop your benefits etc. It's just a case of working with your Trustee to see what they are going to do with your Trust Deed. Once you know this you can then move forward with a plan and we will be happy to help you with advice and guidance along the way.

Thank you so much for all your help - I am feeling like I can breathe a little with the information you have all given me today. I went online and valued my car and it's at a rough estimate of £2195 so I think it would be safe to say that they won't want to take that as an asset.

I will do as you have all suggested and get my Income and Expenses form to them as soon as possible and then see where we are at.

I can not thank you all enough for your help x

No problem, always glad to help.

Looking at the information, sequestration certainly seems to be the best option as there is little point struggling to meet ongoing contributions if you have no income.

Hopefully the trustee will review the information and quickly bring it to a close.

Mark