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23/04/2014 9:34 pm
Hey everybody,
In serious need of advice for a friend who is at their wits end with a fairly serious problem so any advice would be greatly appreciated.
Firstly, He's in Scotland, probably best to get that out of the way first.
So he entered a trust deed in 2006 and stopped paying it in 2007. In the last couple of months Invocas (trustee) has started to chase it up and have asked for an income/outgoings tally which when completed shows that he pays out more than he earns. Advice from CAB and other financial help charities in recent weeks suggested that when they received confirmation of this they would probably release him from the trust deed and pursue him for bankruptcy.
He is on NMW and works 35-45 hours per week. Approx Income £800p/m with an additional £34 p/w working tax credit. Rent £475, Ctax £110 + utilities and subsistence etc.
Anyways latest update from invocas this morning is that the trustee has no intention of releasing him from the trust deed, thus preventing him for filing for bankruptcy and plan to seek to arrest his wages for a minimum of 5% up to a maximum of 15% of his earnings to contribute to the debt. despite the fact that he simply cannot afford this.
Aside from the moral issues of stopping paying the deed, which he now realises was a mighty blunder, any advice with regards to Where he stands? what can he do if anything to prevent his wages being arrested? and so on.
Cheers folks in advance for any help J
23/04/2014 9:54 pm
Hi Craigm82.
For starters, it's not as simple as the trustee simply arresting his wages. They would have to go through various legalities first and I'm not sure they would necessarily have what is required to be able to do this. It would probably depend upon exactly what was signed at the outset.
Secondly, I don't know where the figures of 5-15% are coming from but they bear no relation to the way earnings arrestments work in practice, which are clearly set out in law.
Did your friend get anything in writing from the trustee concerning this?
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
23/04/2014 10:06 pm
Hi Kevin,
Thank you for your reply matey.
He has called them various times in the last few weeks with little or no update but like I said they suggested that he wouldn't be able to make any payments towards it and so would most likely be released and then Pursued for sequestration. Then when he called to see where things were at this afternoon, they dropped the arresting of wages bombshell, which had caused a great deal of distress all day.
Ultimately once he's paid his rent, council tax, gas and electricity whilst taking subsistence into account there's very little in the way of expendable income whatsoever.
