Iilone

The account you describe is a trust account. The trustee under the trust deed would have no interest in the account however just to make sure, please check that the account is actually in trust.

If you are on stat maternity pay, then your trustee has done the right thing and is unable to take contributions from this type of benefit.

Your trustee will have to review your payments when you are back in work to work out a level of contribution and make a decision on whether it is appropriate for you to continue with your trust deed. If it concluded that you are unable to support a payment or if it is substantially less, your trustee will make a decision as to whether it is appropriate to continue with the deed.

Hi Lilone

I imagine the review letter you recieved will have been triggered automatically - just reply and reiterate what your current circumstances are and you shouldn't have anythoing to worry about just now.

In terms of what happens when you return to work, it is really up to your trustee and to some degree up to your creditors too. Your trustee has to report to creditors annually, part of which is noting any change in your circumstances and what effect this has on the return your creditors are likely to receive. If your trustee is minded to do so they could advise your creditors that they intend to allow your Trust Deed to proceed despite a likely reduction in the what will be paid. As long as creditors do not object to this course of action then there is no problem.

Quite often, trustees will seek to find a middle ground, whereby they allow a Trust Deed to continue, but propose to extend the term for a defined period in order to reduce the impact on creditors to some degree.

Thanks for the reply!

If my payment where less what would happen if the trust deed couldnt continue could this leave me in a worse situation? As i fear the worst now after sorting everything out? I know for sure going back i woukdnt make anywhere near the previous payments made of £800 maybe 150 or 200 at a push but i wouldnt be left with much.....childcare costs is what is so expensive!

Thanks for tour help!

Hi lilone.

If the trust deed could not continue you would then be faced with dealing with the debts in a new way.

This wouldn't be ideal of course, but hopefully it will not come to that.

Bear in mind, you may qualify for help with a large part of your childcare costs via Working tax credits too, depending upon your circumstances.

There is a useful calculator on the HMRC website, or even better you could seek help from a welfare rights adviser at your local advice agency.