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Scottish Trust Deed Forum
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Topic starter
17/01/2015 7:43 am
Hi All, I am in a trust deed which finishes next September.
I have got myself in even more financial troubles because my tax credits overpayment wasn't included (£6,000) and they arrested my wages. My childcare also increased by £120 a week when my third daughter was born but my TD company have point blank refused to drop the repayments and I got in a mess.
I now think the best solution is for me to go bankrupt and start again. How would I go about this considering I am already in a trust deed or can it not be done?
17/01/2015 10:22 am
As I understand it, you will have to get released from your trust deed before you can become sequestrated. I take it you have tried to negotiate this with your company already? If not, then I guess that would be your first step. If you no longer pay into your TD then eventually one of 3 things will probably happen. 1 - your company will end the TD and discharge you from your debts (unlikely). 2 - your company will sequestrate you. 3 - the trustee will discharge themselves and you will be at the mercy of your creditors again whereby you can petition for your own sequestration. Dialogue with your company will be key here. Bear in mind, if you are able to afford a contribution then there will be 3 more years of them in sequestration even though you will be discharged after a year.
Glad that's over with....
17/01/2015 11:13 am
Hi missk88
upstream has summed it up totally.
You would be unable to petition yourself while the trust deed is still in place and would need to trustee to be discharged before you can self petition.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
17/01/2015 11:57 am
That's exactly what I was thinking as well Mark. Upstream your sounding like an expert. That's the great thing about the forum, it's not just TDA and the experts, it's also the forum users that can provide great advice too.
When did your overpayment of tax credits arise from missk88?
Ultimately if are unable to afford your Trust Deed payment and it's going to cause you to get further into debt then you may need to consider not paying the TD. If your Trustee is not willing to reconsider things for you then this may be your only option. It should only be used as a last resort but sometimes this is what is required.
David is not currently posting in the Trust-Deed.co.uk forum
17/01/2015 12:11 pm
Do you own any assets missk88?
Home? Car? Anything else?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
17/01/2015 12:21 pm
No assets. The overpayment has arisen from 12-13 tax year which is after my trust deed. I also have an overpayment of housing benefit of around £1000.
My trust deed comes directly from my wages and they are not allowing me to cancel it 🙁 x
Topic starter
17/01/2015 12:23 pm
Are they allowed to refuse to stop the money coming directly from my wages? I asked my employer but they said that the arrangement is for a certain amount and they can't alter the amount.
17/01/2015 2:13 pm
Was this payment direct from your employer imposed upon you after previous payment problems?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
