Hi again gbmraith94.

Payment into a trust deed should always be based upon affordability. If everything else remains equal, a decrease in income should result in a reduction in contribution.

Trustees cannot take any contribution from benefits though.

Will you have any sources of private income, for example a private pension?

No. My only income will be income support and PIP. Based on standard award that would be about 150 a week not including housing and council tax benefit. That's down from a wage of over 300 a week.

gbmraith94

Benefits are protected meaning the trustee is unable to seek payment from these funds for your trust deed.

Your trustee will make a decision on whether or not it is in the creditors best interest to continue with the deed but more often that not, the only resolution for the trustee is to resign from office allowing you to seek alternative debt solutions.

The trustee will enquire whether you know of a third party that may be in the position to continue making payments on your behalf.

To avoid any misunderstanding, I would urge you to speak with the trustee advising them of the benefits to ensure no further payments are deducted as a contribution.

Yes I've messaged them already and they have asked will I be making the same contribution. Which I said I will let them know my financial position once I get the award letters but I didn't think so.
Thank you again.

As Sharon has said, they are specifically not allowed to take a contribution from you if your income is from benefits only. If you want to carry on with the Trust deed you may need to see if a third party is willing to pay the payments for you, or else try and persuade your Trustee that they should allow the TD to continue without further contributions due to your change in circumstances.

Another alternative might be to seek to go bankrupt instead, though your trustee would need to terminate your Trust Deed first.

Ok will see what they say when they get back to me. Thanks

Hi.
An update from my Trustee. They have dais that they are assessing if the trust deed is still viable. If I can't keep up the schedulEd payments they will fail the trust deed and hand me back to my creditors. I have said it'll be impossible to keep to the original payments on benefits. So looks like they'll fail the trust deed. I do think it's unfair especially since they've just received over #163;2100 from my ppi payments...I could have done with that myself.

The Accountant in Bankruptcy's Notes for Guidance state that it is not appropriate to terminate a Trust deed and refuse discharge merely because of a change in circumstances beyond the person's control. You could therefore raise this argument with your Trustee if you wish.

However, you might prefer just to allow the Trust Deed to be terminated rather than sit out the final 2 years. You could then apply for bankruptcy instead, meaning you will be discharged within a year (or even 6 months if you meet certain criteria). However, you should seek advice about your specific circumstances before going down this route, as bankruptcy can have consequences, especially if you own any assets.

Ok thanks. Will look in to both.

Hi gbmraith94,

Sorry to hear about your change in circumstances. Make sure that you check what your entitlement is to all benefits to ensure that you receive what you are due and nothing is missed. According to an article on entitledto website over 20 Billion goes unclaimed per year in benefits in the UK so always a good idea to check.

If your unable to complete your agreed payments within a suitable timescale then as Kevin has pointed out there are a couple of options for both your Trustee and you to consider.

It could be a good idea for you to perhaps request a meeting with your Trustee or case worker to discuss everything in person and to look at the options. Sometimes with a change in circumstances and some uncertainty this can help.

Ending the Trust Deed and entering into a MAP Sequestration (if you qualify) could be the easier and quickest way of clearing your debts and allowing you to move on with life and focus on your health. This is something that should be discussed in detail with your Trustee as they will be fully aware of your full financial circumstances.

Hi.Further update. Got an email today from CWF saying they have reviewed my case and they are going to put me through a MAP !!! Minimal asset process. No idea what that is. I've asked to speak to someone but I've still to get a call back.

It's a speeded-up form of bankruptcy for people who are either reliant only on benefits or who have no spare income to make a payment to their debts. You also need to owe less than £17000 and own no significant assets. It costs £90 to apply and you would normally be discharged from your debts after 6 months with no further payments to make.

A MAP is something that you would apply for yourself, but can only do if your Trust Deed has been terminated first and your trustee discharged. So I guess that their plan is to do this and therefore enable you to make a MAP application.

You do need an approved money adviser to assist you in making the application, so might need to seek assistance from your local money advice agency - unless your trustee firm is willing to sign it off for you.

Ok thanks. What do I need to do??? Do I need get all the information of all my debtors, proof of income and expenditure etc or does the agency that I get to do it do all that?
I don't know as yet if the trustee company are going to do that or not ( probably for a fee ). Had a look online and there's a company that does it for free!
Thanks again.

You need to wait until your Trust Deed is completely finished and your trustee discharged before you can apply. That will probably tyake several weeks at least.

You should then approach your local free money advice agency (eg CAB or local authority advice centre) and an adviser there will be able to take you through the whole process and advise you of the required evidence.