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Topic starter
14/12/2014 6:31 pm
I am in the middle ie 2 years into a trust deed. I am on the highest rates mobility and care components of DLA.I have applied to get a mobility car so if successful I would have a lesser amount to offer in my monthly payments, am I doing wrong because I thought, perhaps mistakenly, that Disability Living Allowance was for to help with your disability and not for paying debts.
14/12/2014 6:47 pm
Hello legoland1877 and welcome.
DLA is paid to cover the additional costs that someone might have as a result of a condition.
Your trust deed payment is based upon:
1 - Your total income, including DLA.
Minus -
2 - Your total reasonable expenditure, including the additional costs associated with the condition that leads to the DLA being paid.
So the question that your trustee might ask is why you now need this additional expenditure for the vehicle when you didn't previously?
If there is now a justified need your trustee will then need to consider whether a reduction in your payment is fair to your creditors given that they agreed to your trust deed on the basis of you offering a higher amount.
So I don't think it's a question of right or wrong.
The questions are more whether you've acted reasonably and whether the implications for your creditors are fair on them.
It probably would have been best to work through this with your trustee before ordering the vehicle, but if that's done already I'd suggest getting in touch ASAP so that you know where you stand going forwards.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
14/12/2014 6:50 pm
quote:
Originally posted by Trust Deed Assistant
[br]Hello legoland1877 and welcome.DLA is paid to cover the additional costs that someone might have as a result of a condition.
Your trust deed payment is based upon:
1 - Your total income, including DLA.
Minus -
2 - Your total reasonable expenditure, including the additional costs associated with the condition that leads to the DLA being paid.
So the question that your trustee might ask is why you now need this additional expenditure for the vehicle when you didn't previously?
If there is now a justified need your trustee will then need to consider whether a reduction in your payment is fair to your creditors given that they agreed to your trust deed on the basis of you offering a higher amount.
So I don't think it's a question of right or wrong.
The questions are more whether you've acted reasonably and whether the implications for your creditors are fair on them.
It probably would have been best to work through this with your trustee before ordering the vehicle, but if that's done already I'd suggest getting in touch ASAP so that you know where you stand going forwards.
Topic starter
14/12/2014 6:51 pm
Thank you for your reply, I at least know where I stand.
15/12/2014 1:26 pm
Hi legoland1877,
Was there a reason that you choose a Trust Deed rather than proceed with a Sequestration?
Is your DLA your only source of income or do you have any other source of income such as a job or private pension/investments?
David is not currently posting in the Trust-Deed.co.uk forum
