Welcome to the forum aqlbastef, and thanks for your questions.

These are slightly tricky questions to be honest. In a trust deed any disposable income you have is supposed to be made available to creditors, so if you can afford to save you may find that your trustee seeks to increase your contributions.

Having said that, most insolvency practitioners do encourage people to put some money aside if they can, for emergencies or irregular payments. I guess it is the level of savings that matters - ie if you are managing to put a lot aside each month then really your trust deed contributions should be higher and you may even find that your trustee asks you to pay some of the savings over to them.

Like I said, a tricky one - sorry for the slightly vague answer. Maybe Mark has a view on this?

Hi albastef

I must agree with Kevin as it's open to interpretation.

My thoughts are that you have a surplus and the Trustee agrees a contribution from that figure. What you do with the remainder is your business. If you spent it, it would be no problem, so why should you be punished for sacrificing and saving it?

Mark

Thanks for prompt reply, even late at night! Cheers Guys!

Hi albastef,

I recently completed a TD and over the past 3 years I did join 2 of my companies share save schemes at ?ú6 pm each. This was clearly showed on my wage slip but I IP never said anything. I think I was allowed roughly ?ú20 for personal expenses. Although I think if this had been more then they would have upped my TD payments, I couldn't have afforded more anyway.

Thanks for sharing that blacklily. It seems IP's do not mind a little saving by those in Trust Deeds.

I think it's a good idea for anyone in a Trust Deed to put some money aside to cover irregular spend like car repairs, domestic appliance replacement etc. I know the amounts saved will be limited by the restricted budget but any kind of savings buffer could turn out to be vital.

Thanks, the figure I was looking at was around ?ú25 a month. Think I could just about cope with that.

I would imagine there would be no problem at all in you putting ?ú25 per month in to the scheme. A smart move if you can afford it I would say.