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Motability Refund

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 tigh
(@tigh)
Trusted Member
Joined: 4 years ago
Posts: 54
Topic starter  

Hi,

We entered Sequestration in November 2019, so we have 1 year left of our payments to make. I receive PIP, but my Mobility allowance part of it is paid directly to Motability for the lease of my car. Normally, at the end of the lease (3 or 5 years), if the car is kept in good condition, they (Motability) pay a Goodwill bonus, but this year because of the cost of Living crises, they have decided to refund everyone who has a car under the scheme with £350.

Will this be required to be paid to our trustee, or will I be allowed to keep it?


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4237
 

Benefit income cannot be made to be paid into a bankruptcy or Trust Deed, so you should be allowed to keep it. There is a possibility that the Trustee might try to argue that by having this extra money it means that you can afford to contribute more from your non-benefit income instead but I doubt this will happen.

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


   
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 tigh
(@tigh)
Trusted Member
Joined: 4 years ago
Posts: 54
Topic starter  

Thanks Kevin for the information.

Is it the same situation for the heating allowance of £500 for someone of pension age? Last year it was £200, but the government increased it for Cost of Living to the higher amount this year.


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4237
 

Yes, just the same.

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


   
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(@nicci_36)
Eminent Member
Joined: 2 years ago
Posts: 37
 

Hi

Would this also apply to cost of living payment of £350 for someone who is on universal credit as well

Nicola Clark


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4237
 

Yes, it should be the same principle.

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


   
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