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Just Joined

2 Posts

Posted - 06 February 2021 :  19:12:47  Show Profile  Reply with Quote
Hi, Iím looking for some advice please. Iíve been paying into a trust deed for 3 years and due to ill health I am now on benefits. Iíve been on benefits since august which is my only income other than child maintenance and have continued to make payments but Iíve just found out benefit payments cannot be accepted as sole income and now Iím wondering what will happen? If Iím sequestrated what will happen to the payments Iíve ade and how long will it show on my credit file? Will I get a refund of the payments Iíve made since august?
Thank you

Paul McDougall
Trust Deed Expert

101 Posts

Posted - 08 February 2021 :  09:01:07  Show Profile  Reply with Quote
Hi Rj40

You are correct that no benefit can be paid from benefits however it can be taken into account when assessing your level of payment with private income. Child Maintenance is classed as private income. It would be unlikely a refund of payments would be agreed but there is no harm is asking your Trustee for a refund.

Sequestration is a last resort however your trustee will have to make a decision as to whether it is appropriate to allow your trustee to continue. The Accountant in Bankruptcy notes for guidance suggests that the Trust Deed should not fail if you had no control over your change of circumstances and that may allow the Trustee to discharge you at the end of the 48 month period. This is a rather grey error and would be a decision for your Trustee.

I would recommend reaching out to speak to your Trustee's office so work together with a way forward.


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Edited by - Paul McDougall on 09 February 2021 13:02:01
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Advanced Contributor

219 Posts

Posted - 12 February 2021 :  15:20:45  Show Profile  Reply with Quote
Hi Rj40,

Sorry to hear about your ill-health and change in circumstances.

How much was your payment to the Trust Deed and how much child maintenance do you get? If your TD payment was £150 and you only get £100 CSA then technically that's all that could be taken as a payment to the TD. I'd ask your Trustee for a refund on the payments to see what they say.

Sequestration is nothing to be worried about or fear. If your Trustee decides your Trust Deed can't continue then this would be a good option to consider. If would remain on your credit file for a period of 6 years. If that happens the payments you have paid into your Trust Deed will cover the administration costs of the Trust Deed.

Have you discussed Sequestration with your Trustee? Like Paul suggests get in touch with them and let us know how you get on.
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Just Joined

2 Posts

Posted - 12 February 2021 :  15:56:05  Show Profile  Reply with Quote
Hi, thank you both for replying and helping me. Iíve asked for a few weeks before I send in my income and expenditure as Iím going through an ugly court case with my ex and domestic abuse. Iíll speak to them about it, my payment was £300 and my child maintenance is £320. Thank you for your help.
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TDA (Debt Adviser)
Trust Deed Expert

13654 Posts

Posted - 15 February 2021 :  08:59:54  Show Profile  Reply with Quote
It sounds like you're having a really tough time Rj40.

Best wishes with everything over the coming few weeks.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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