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Help Needed Urgently...
JamesD1981
Posts: 4 Newbie
Hey everybody,
In serious need of advice for a friend who is at their wits end with a fairly serious problem so any advice would be greatly appreciated.
Firstly, He's in Scotland, probably best to get that out of the way first.
So he entered a trust deed in 2006 and stopped paying it in 2007. In the last couple of months Invocas (trustee) has started to chase it up and have asked for an income/outgoings tally which when completed shows that he pays out more than he earns. Advice from CAB and other financial help charities in recent weeks suggested that when they received confirmation of this they would probably release him from the trust deed and pursue him for bankruptcy.
He is on NMW and works 35-45 hours per week. Approx Income £800p/m with an additional £11 p/w working tax credit. Rent £475, Ctax £110 + utilities and subsistence etc.
Anyways latest update from invocas this morning is that the trustee has no intention of releasing him from the trust deed, thus preventing him for filing for bankruptcy and plan to seek to arrest his wages for a minimum of 5% up to a maximum of 15% of his earnings to contribute to the debt. despite the fact that he simply cannot afford this.
Aside from the moral issues of stopping paying the deed, which he now realises was a mighty blunder, any advice with regards to Where he stands? what can he do if anything to prevent his wages being arrested? and so on.
Cheers folks in advance for any help J
In serious need of advice for a friend who is at their wits end with a fairly serious problem so any advice would be greatly appreciated.
Firstly, He's in Scotland, probably best to get that out of the way first.
So he entered a trust deed in 2006 and stopped paying it in 2007. In the last couple of months Invocas (trustee) has started to chase it up and have asked for an income/outgoings tally which when completed shows that he pays out more than he earns. Advice from CAB and other financial help charities in recent weeks suggested that when they received confirmation of this they would probably release him from the trust deed and pursue him for bankruptcy.
He is on NMW and works 35-45 hours per week. Approx Income £800p/m with an additional £11 p/w working tax credit. Rent £475, Ctax £110 + utilities and subsistence etc.
Anyways latest update from invocas this morning is that the trustee has no intention of releasing him from the trust deed, thus preventing him for filing for bankruptcy and plan to seek to arrest his wages for a minimum of 5% up to a maximum of 15% of his earnings to contribute to the debt. despite the fact that he simply cannot afford this.
Aside from the moral issues of stopping paying the deed, which he now realises was a mighty blunder, any advice with regards to Where he stands? what can he do if anything to prevent his wages being arrested? and so on.
Cheers folks in advance for any help J
0
Comments
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not totally sure, but it soundsd like he can apply for bankruptcy using the low income low assets route.
I'm just reading this stuff myself, so don't take my word for it.0
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