Hi Kevin

There have been a few posts on the subject. I see no reason why not once the income and expenditure has been reviewed and the contribution agreed. If you are not in a Trust Deed, then the safest way would be for you to keep the money in an account in your name.

Mark

Welcome to the forum Kevin.

Making modest savings from within the allowances provided during a trust deed should be no problem at all.

In fact, this is a really good idea to cover irregular expenditure like car tax, car repairs or clothing for example.

An issue normally arises only if the level of saving is seen as excessive (indicating that a higher payment to creditors is affordable and therefore reasonable) or where it is being funded by increased pay or a lump sum that hasn't been disclosed to the trustee.

This page provides further information on this topic:

https://www.trust-deed.co.uk/savings-and-trust-deeds-in-scotland.html

Hi Kevin,

Savings will not invalidate the Trust Deed but the concern is that her Trustee could have a claim over these.

There is no problem with your wife having some small savings for future problems If allowances are made on the income and expenditure which TDA has covered.

The best thing to do is for you to keep the money you would be saving on her behalf and as and when issues arise you can assist your wife with the costs this way.

I think that any contingency, or expenditure built in to your Trust Deed for vehicle repairs wtf may be put in to a savings account in trust for when the MOT/service/repairs are due. However, I would not agree that any Trust Deed client should have sufficient net free income to put in to a savings account for themselves or a spouse (especially if the spouse is subject to a similar arrangement). It is open to review by the Trustee and may be classed as an additional asset by many Trustee's. Best seek guidance from your Trustee first to avoid any doubt.

Hi this months wage had an extra £300 on it due to overtime paid back over the past couple of months. I mainly saved this for mot, repairs & an upcoming weekend away - will I get this taken off me?

Hello sparky1.

We advise people to get an agreement in place about extra income like overtime. Often a 50:50 split is possible for example.

However, without such an advance agreement you're really in the hands of your trustee now.

Hopefully they'll allow you to keep some in recognition of the extra work that you've done to earn it.

Thanks TDA - I'll own up tomorrow and see what happens.

We have now adopted the approach that the 1st 10% of net income is disregarded with overtime and then 50% of the remainder. ie if net monthly income is £2k, then we disregard the first £200 and look for % of the remainder.

I don't think people should be unduly punished for trying to work overtime or gain bonuses.

Mark

That's a good system Mark and follows the guidelines of an IVA. When I used to administer hen at a Nominee stage that was a standard criteria set by the majority of creditors. After the first 10% it's split 50/50. So basically 60% client/50% Trustee. Can't say fairer than that.

Hi Rob

Yes, it was nicked from our IVA office in Cardiff.

It just seemed a fairer system all round and one which creditors are happy with.

Mark

I can't believe this, we had to put money a side for our old banger of a car for maintenance. WA did not allow this, I can't believe it I just can't!!!!! They would not allow anything such thing. We were definitely hard done by. I wish we never went near WA. I knew we had a bad experience with them. The more I read, the more I cannot believe it! I so badly want to take them to the cleaners.