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Scottish Trust Deed Forum
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23/06/2011 11:29 am
I agreed a trust deed over 2 years ago. I have been paying it faithfully but have now come up against a new problem. I am in receipt of Tax Credits and they are saying I have been overpaid to the tune of £4.5k - this is only partly correct as some of this is for an overpayment through incorrect salary details which I admit to owing and will happily arrange to pay off once my trust deed ends. The other half of it is for a years money I was entitled to but they are saying I didnt complete the paperwork - this was a few years ago and I objected at the time and filled out paperwork to dispute it - 2 years later they are now chasing me again after I heard nothing more about it.
I cant afford to pay the tax credits back and my trust deed - the tax office have told me to speak to the trust deed people and lower the amount I'm paying but I didn't think I could do this unless my income changed. Can the tax office make me do this? I'm going to dispute it again as it appears they didn't receive my original dispute form but I am seriously considering just making myself bankrupt to get rid of this. I was looking forward to being debt fee after 3 years of paying my trust deed - now this. It seems it would be easier to just go bankrupt and get it written off[:(]
23/06/2011 11:38 am
Welcome to the trust deed forum Hellebelle.
Prevention is better than cure so, for the moment, I'd concentrate your efforts on disputing this repayment if you believe it to be incorrect.
If for any reason your dispute was not successful I'd suggest that you then talk the matter through with your trust deed company. I'm sure it will be possible to come up with a way to deal with this that works for you, the tax office, your creditors and your Trustee. I'm sure it will not be the first time that they have dealt with such a situation.
Bankruptcy isn't an option for you while you are in a trust deed. That can only happen if the trust deed fails. In bankruptcy you'd be asked to make payments towards your debts (calculated in a similar way to your trust deed payment) for a further three years. That would obviously be a huge shame given that you appear to be on the final stretch of your trust deed now.
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