Maternity Grant

sarah0404

I'm just in the process of setting up my Scottish Trust Deed (sort of the same thing as an IVA). Apparently I have to inform the insolvency practicioner if I inherit money, win the lottery or somehow come into money.

Apparently I qualify for a maternity grant from Sure Start, which is worth £500. Just printing the forms off as I type! Will I have to inform them if I receive this?

I could really do with this money, as i don't have any other money stashed anywhere to buy baby bits and pieces. I was hoping to buy a set of washable nappies so i could save money in the long term. They're about £250 for a full birth to potty set though!

Do you think this payment will be exempt? If I do have to hand it over will they let me keep some of it? Probably won't even bother applying if it has to go straight into my trust deed.

Broken_hearted

This money is for the baby not you and is a form of benefit so they shouldn't take it.

fermi

I've seen this asked before somewhere.

I can't find it now, but I do know the OR exempted the payment in that case (as they !!!! well should). The money is a benefit, and is for the the benefit of the child, and so it is exempt in the same way that CB is.

sarah0404

Thanks for the replies. I would have thought it was exempt, as it is a payment from the social fund for a specific purpose. I will phone on Monday just to check. Our child benefit was included as earnings in our SOA though, which made me think that they might take it anyway.

fermi

Child befiefit must be included in your SOA, but it is still exempt from any claim by the OR.

This has been ruled upon by the High Court.

The High Court has stated as a matter of public policy that child benefit and similar benefits should not be included in the statement of income when applying for an IPO and there is no reason why this point should not be extended to cover IPAs. Whilst it is acknowledged that in the figures for expenditure there may be outgoings for the benefit of the children, at least to the value of the child benefit received, to ensure that there is no risk of them being deprived of it, child benefit should not be included in IPA assessments.

In other words, the OR can't touch it.

EDIT (Misread above:o): This applies in England in bankruptcy (see post below) but I can't see why these sorts of benefits should have to go into a Trust Deed since the benefit is for the child, not you.

sarah0404

fermi wrote: »

Child befiefit must be included in your SOA, but it is still exempt from any claim by the OR.

This has been ruled upon by the High Court.



In other words, the OR can't touch it.

Hi fermi. Do you know if this is the case in Scotland? Or where I could find out? Our child benefit was included in our income and as far as I'm aware is being allocated into the Trust Deed. They have allowed for childrens activities, but the amount isn't = to the child benefit. Things are supposed to be being re-assesed at some point after we have this baby to take into account the increased amount of child benefit and tax credits, as well as the increased out goings for a family of 6 rather than a family of 5. I think they are meaner here in Scotland! I've seen people posting up their SOAs here and they are allowed money for holidays and savings for Christmas and stuff like household and garden maintenence. I'm not allowed any of that!

fermi

Forgot you were in Scotland on a Trust Deed.:o (That bit about the high court comes from guidance about bankruptcy in England.)

I don't have any direct info on whether this still applies, but I don't see why the same principle shouldn't hold. This sort of benefit is not for "your benefit" (if you see what I mean) but is intended explicitly for the child.

It's an interesting point how this should be treated in a TD, and if no-one else can tell us definitely I'll have a look around and see what I can dig up.

Might be worth having a good look through here: http://www.debtquestions.co.uk/debt_forum/viewforum.php?f=16

sarah0404 wrote: »

I think they are meaner here in Scotland! I've seen people posting up their SOAs here and they are allowed money for holidays and savings for Christmas and stuff like household and garden maintenence. I'm not allowed any of that!

IVA's and Trust Deeds are are generally much stricter in what is permitted in someones SOA, even in England. Most of the SOA's you will have seen on this board will be for the Official Receiver in England, so shouldn't be taken as being things that would necessarily apply to you.