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Scottish Trust Deed Forum
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Topic starter
24/05/2012 11:28 am
Hi All
I have a protected trust deed and have 5 months left to pay. In april this year i was dismissed on health grounds. I am not employable since my illness is serious. I worked for HMRC who gave me a compensation amount of £7445 of which £4000 is statutory. I pay £280 each month for my trust deed when i told the td company of my predicament ie my income has reduced by approx 50% they emailed stating that i give £500 straight away but must pay the £280 each month. The income/outgoing expenditure that was given to them should that i was in debt even before i payed the £280. Is this a fair deal or can i get reviewed on my current finances?
24/05/2012 12:57 pm
Welcome to the forum graham.
Is it the case that you'll be discharged from your trust deed if:
1 - You pay over a lump sum of £500 and/
2 - You make five further payments of £280
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
24/05/2012 3:46 pm
That is correct. But the £280 was based on full time employment
24/05/2012 3:57 pm
Hi again graham.
This sounds like it might be a pretty good outcome for you.
£4000 out of £7445 was statutory, so you'd expect to keep that based on what we've read here before on redundancy during a trust deed.
That leaves £3445 that you might be expected to pay into the trust deed as a windfall.
In fact you've only been asked to pay over £500 of that sum, plus five payments of £280 which is £1400.
In total you'd be paying £1900 out of a figure of £3445 that would usually be due, and you'll be discharged from your trust deed.
A possible alternative would be that the £3445 has to be paid over as a windfall now, and you would still have five monthly payments of £280 to make as well.
I wonder if your trust deed firm has tried to come up with a fair and reasonable outcome for you given the unfortunate circumstances that you've mentioned.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
