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Scottish Trust Deed Forum
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Topic starter
05/12/2011 12:47 pm
I am looking for some advice. I know of someone who is in a trust deed and has received a substantial sum of money from an Insurance Claim which they have not disclosed to their trustee. I am in a trust deed myself so I know you have to disclose this sort of information and I asked this person if they had (because I was unsure if they were aware they had to). They told me no they have not and knew that they were supposed to but didn't want to pay anything towards their debt. Not really sure what to do or indeed if there is anything I can do but I feel that this person is just mocking the system as they racked up so many debts then just went into trust deed and now has money to pay these debts but is not going to.
05/12/2011 12:55 pm
Welcome to the trust deed forum paragon123.
If you were so inclined you could report the matter to the Trustee of this individual; you could probably locate the details of the Trustee on the Edinburgh Gazette (where the trust deed was advertised).
I guess you'll need to weigh up the ethics and practicalities (real and potential) of this in line with your own personal values.
Presuming that this insurance payout will almost certainly have passed through a bank account the individual concerned is taking a pretty big chance of being discovered by their trust deed firm anyway (which could have serious consequences).
I agree that it doesn't seem right; I think creditors deserve to be treated fairly (in line with the agreement voluntarily made by everyone involved in the trust deed) after having agreed to write off debts that an individual thought that they could not repay.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
05/12/2011 1:55 pm
Surely if this is an insurance payout, it is not a 'windfall' at all?
Insurance is to pay for a loss.
That could be anything from a broken TV to a replacement car or more.
05/12/2011 2:21 pm
It depends JintyMcSkinty.
For example, some types of compensation payment connected to personal injury payout might need to be paid into a trust deed.
Where there is doubt we'd advise the individual to run the circumstances by their Trustee.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
05/12/2011 2:50 pm
That is compensation rather than insurance, I suppose. And that does seem fair.
Insurance payouts from a premium you have been paying yourself, rather than a 3rd party's liability insurance, is very rarely, if ever, so generous that it could be considered 'a windfall' though.
IMO anyway 🙂
Topic starter
05/12/2011 3:00 pm
Sorry, yes it is compensation rather than an insurance claim as I previously stated. Thank you for your advice.
