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Topic starter
01/12/2011 11:47 pm
Hi, I would be grateful for your advice please. I started my TD in , May 2009 and it will, hopefully, end May, 2012. I have paid monthy payments up until April this year, which stopped when my salary decreased due to my transfer to part-time work because of stress. My family and grandchildren have moved to another town(I am a widow) and I am depressed and would love to be with them, however the only way I can do this would be to retire or leave my current job and try to find a job in the new town, which will not be easy due to the current climate and my age (I am 63). I am eligible to retire so could this be an option whilst I am still in the TD? My retiral income of basic pension + pension credit + 2 very small pensions would amount to around the same as I am earning now, so would still be unable to make any payments to the TD. I will also be due a lump sum of £1,500 from my pension fund. Thanks for your help.
02/12/2011 9:21 am
Hi senior citizen
If your income has dropped and you havent paid since April, your trustees only option is to petition for bankruptcy. Has your trustee advised of this or have you heard anything?
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
02/12/2011 11:25 am
Hello Senior Citizen and welcome.
I'll stand well back from this, but there has been some variance in opinion on this issue in the forum before.
Some of the other experts feel that if your circumstances have changed (for reasons that are out of your control) this should not necessarily affect your trust deed continuing even if no contribution is possible.
For that reason I'd suggest talking through your circumstances with your trust deed firm to see where they stand on the matter.
At the end of the day, they cannot stop you from retiring and moving.
The question is really what will happen if you remain in a position where you cannot contribute to the trust deed; something that seems will be the case whether you carry on as you are, or make the changes that you are considering.
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Topic starter
02/12/2011 1:39 pm
quote:
Originally posted by Mark McFadyen
Hi senior citizenIf your income has dropped and you havent paid since April, your trustees only option is to petition for bankruptcy. Has your trustee advised of this or have you heard anything?
Mark
Hi Mark, Since my income dropped in April I have sent them 3 Expenditure sheets showing my incomings and outgoings but no mention of bankruptcy. Is this something I should ask them about?
Topic starter
02/12/2011 1:44 pm
quote:
Originally posted by Trust Deed Assistant
Hello Senior Citizen and welcome.I'll stand well back from this, but there has been some variance in opinion on this issue in the forum before.
Some of the other experts feel that if your circumstances have changed (for reasons that are out of your control) this should not necessarily affect your trust deed continuing even if no contribution is possible.
For that reason I'd suggest talking through your circumstances with your trust deed firm to see where they stand on the matter.
At the end of the day, they cannot stop you from retiring and moving.
The question is really what will happen if you remain in a position where you cannot contribute to the trust deed; something that seems will be the case whether you carry on as you are, or make the changes that you are considering.
Hi and thanks for your reply. I will talk this over with my Trustee as you suggest.
02/12/2011 2:05 pm
Hi both
I don't think there is any confusion.
The PTD Regulations state:
'19.ÔÇö(1) Subject to paragraph (2) and regulation 20 below, a debtor will be discharged from all his or her trust deed debts and obligations contracted by that debtor, or for which that debtor was liable at the date that the trust deed was granted, if the following conditions are metÔÇô(a)the trustee under the protected trust deed makes a statement that to the best of the trustee's knowledge the debtor has met the debtor's obligations under the trust deed'
If the proposal has not been met, then the debtor has not met the obligations of the Trust Deed and I cannot see how a Trustee could make that statement on Forms 5 & 6 and sign these off.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
05/12/2011 10:59 am
I'm afraid I'd have to disagree Mark. You are equating the debtor meeting their obligations with them paying as much as what is estimated in the initial trust deed proposals. However, their obligations as stated in the trust deed document are in fact to pay across whatever is reasonably affordable throughout the period of the trust deed, not necessarily what is stated in the initial proposals (which are after all only an estimate of what creditors are likely to get).
The section you quote above covers whether a debtor should be discharged, not whether they should be sequestrated, and the AIB's Noted for Guidance clearly state that:
"It would not be appropriate to refuse to discharge a debtor because of a change of circumstances which prevents them from continuing to pay contributions."
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