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john66
Contributor

7 Posts

Posted - 21 June 2020 :  12:05:01  Show Profile  Reply with Quote
hello please advise i have a trust deed which ends in 8 months
i have been told that i will lose my job at the end of the month i have been told the amount i am getting and i was going to take 6 months off work semi retire to look after my disabled wife
i had plans to buy a new car that my wife would be able to fit her wheelchair into and to get her out of the house she is housebound and i need a big car or people carrier to take her out
my current car is never going to pass a mot rust
i am getting 10 months wages and was hoping to use this to buy a new car and to live off
but i have been told that my trust deed will take all of the money
and give me back a couple of thousand 2 months wages can you please advise

jm

TDA (Debt Adviser)
Trust Deed Expert



13547 Posts

Posted - 21 June 2020 :  18:19:19  Show Profile  Reply with Quote
Welcome to the forum john66.

I'll apologise in advance because I'm afraid this will not be the answer you were hoping to hear.

You should expect to be able to keep the statutory element of your redundancy settlement. This is the minimum amount that your employer must pay you by law.

The intention is that you get to keep this part of the settlement so you can manage temporarily while looking for new work.

Any extra that you receive, because of beneficial contract clauses or via negotiation with your employer (as examples) would normally have to be paid into your trust deed to help repay your creditors.

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Edited by - TDA (Debt Adviser) on 21 June 2020 18:20:03
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john66
Contributor

7 Posts

Posted - 21 June 2020 :  20:24:02  Show Profile  Reply with Quote
WHAT IF HALF OF IT GOES STRAIGHT INTO MY PENSION FUND ALSO DOES HAT INCLUDE HOLIDAY PAY FOR TRUST DEED

jm
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Harls1
Regular Contributor

17 Posts

Posted - 21 June 2020 :  22:02:24  Show Profile  Reply with Quote
Hi
Does you wife have PIP personal independence payment (mobility) or DLA disability living allowance mobility middle or higher. If not try applying. The mobility components can convert to a disability car to help your wife become mobile. Apologies if you are aware of this already.

Harls1
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TDA (Debt Adviser)
Trust Deed Expert



13547 Posts

Posted - 22 June 2020 :  08:59:11  Show Profile  Reply with Quote
Hi john66.

I'm not sure whether this is what you're meaning, but choosing to pay money that should have gone to your trustee into your pension could have really serious repurcussions for you.

Holiday pay is income. If you receive an income that's much higher than usual I'd expect that your trustee would look to gather in the additional sum.

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Kevin Mapstone
Trust Deed Expert



3902 Posts

Posted - 22 June 2020 :  11:49:48  Show Profile  Reply with Quote
Who was it told you that the trustee would allow you 2 months wages, John66? Unless it was your trustee then it doesn't really mean much.

The guidance that trustees have to follow is not very clear when it comes to redundancy monies and as such you will probably find that different trustees treat this situation in different ways - some probably more generous than others. As TDA says, it is normal to expect to be able to keep you statutory redundancy entitlement - which will be determined by your length of service, your wage and your age - and maybe holiday pay and pay in lieu of notice too (if applicable). Any enhanced redundancy sum will probably be required to be paid in to your Trust Deed I'm afraid, though it is definitely worth making the case to your trustee as to why you should be allowed to retain some of those funds given the situation with your car and wife.

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john66
Contributor

7 Posts

Posted - 22 June 2020 :  12:12:35  Show Profile  Reply with Quote
it just frustrating i have 8 weeks holiday pay and 16 years long service at 1 half weeks
i also owe a family member a few thousand that i borrowed to get my current car fixed last year and would of liked to pay them the money am owe them and pay my housing rent arrears Is it possible pay off my rent arrears and my family member what i am due them

jm
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TDA (Debt Adviser)
Trust Deed Expert



13547 Posts

Posted - 22 June 2020 :  16:59:24  Show Profile  Reply with Quote
Hi john66,

These are questions to put to your trustee.

Unfortunately the only relevant answer here is the one that they give you. As Kevin explained in his post different trustees might go about this in slightly different ways.

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Kevin Mapstone
Trust Deed Expert



3902 Posts

Posted - 22 June 2020 :  18:58:36  Show Profile  Reply with Quote
You can certainly put your case to your trustee and they would hopefully be sympathetic. However, you should be prepared to answer the question as to how the rent arrears arose, as presumably an allowance was made in your budget to cover rent anyway?
Did you let your trustee know about the car repairs at the time and that you were going to have to borrow money from family to get it fixed? If so then I'd say you have a stronger case for being able to repay this debt now that you have funds available, especially if the car was needed for work purposes.

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questionmark
Frequent Contributor

25 Posts

Posted - 07 July 2020 :  23:38:02  Show Profile  Reply with Quote
Hi. I'm in a similar situation like John66. I might be redundant and willing to get statutory redundancy payment which is 6 week and app. 3k. Can I keep that amount or need to be paid to my trust. I am not entitled for any extra pay off or bonus. But I have a 2nd job as well (part time, 12.5 hours per week). I have unemployment insurance which is "unearned income". I will not be entitled for any benefit from the government. Can my cost and expenditure recalculated and continue to pay my PTD or will be suspended until I find a new full time job. I have 7 more months to pay. Thank you.
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Paul McDougall
Trust Deed Expert



94 Posts

Posted - 08 July 2020 :  08:10:16  Show Profile  Reply with Quote
Morning

Your Trustee will not have an interest in Statutory Redundancy Payments.

It is likely your Trustee will re-evaluate your contribution. If a reduced contribution is agreed then it is down to your Trustee whether to extend the duration of the deed to ensure all payments are made in accordance with the original proposal.

Paul

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