Hi Bigred.

At what stage of setting up a trust deed are you?

Will this car replace another?

What was the source of the savings?

Hi ,

Thanks for your reply .

Yes well my car has recents died and this will be replacing it . Still at the early stages .

The source of the savings was me being able to put some money away when I lived under different circumstances . Obviously that has changed and can no longer do so .

Hi Bigred,

Have you actually signed a Trust Deed or are you just at the stage of discussing this with an advisor?

When it comes to a Trust Deed you should declare any savings which you have before you sign anything as a Trustee could consider these an asset and ask for them to be paid over into the Trust Deed to increase the pot and return for creditors.

It is permitted to have savings during a Trust Deed but this amount is capped at a maximum of £20 per month. Over the course of a 4 year Trust Deed you could effectively save £960 without anyone questioning this. Anything above this the Trustee would have a good argument to ingather for th creditors.

If your car is no longer working and it's something which is reasonably required i.e. for work purposes then a Trustee may be willing to be a little flexible and allow you some of these funds to purchase a new car. Ultimately if you can't get to and from work you can't pay a payment to the Trust Deed.

It's something which will come down to the individual discretion of the Trustee. If you haven't yet signed a Trust Deed then it may be a little easier to arrange this than if you have already entered into one.

Best pick up the phone and speak with your Trustee about.

Let us know how you get on.

David,

Thank tou for your reply .

Yes I am past the signing stage.

I will explain to my trustee and hopefully they will understand , yes a car is a requirement for me to get to work .

I will keep you posted .

Thanks again .

Hi Bigred.

Were you asked to disclose any assets to your trustee prior to signing the trust deed?

I cant remember to be honest, If I was, the non disclouse has definately been an oversight on my behalf.

I understand if the trustee will want to use these funds towards payong my creditors but hopefully we can reach some sort of agreement which would allow me to use some of the funds towrds a car to allow me to get to work and back.

This whole process has been a constact learning curve, I appreciate everyone taking the time to respond.

was the current car you have included in the td ?

Hi Michelle,

Yes it was indeed.