I recently received notification of inheritance due to me and I’ve informed my insolvency practitioner immediately. This is just under 5000. At the same time I requested to keep these funds for a vehicle which I need to get to and from work and child to and from school as I’m a single parent. 

My current vehicle is in an awful state of disrepair which wouldn’t be worth fixing due to its age and the huge cost involved in the work required. The trust deed were also aware of this as I was trying desperately and failing to obtain finance before receiving information of the inheritance. 

My insolvency practitioner has come back saying that if I am to keep the inheritance to purchase a new car this will extend the term of my trust deed so that my creditors will still benefit from the inheritance in full. 

Has something been overlooked here? I feel this is a really poor decision considering without a vehicle I won’t be able to earn a wage and live to the standards I was at the start of the trust deed. This is forcing me into an extended time in debt with the trust deed when it is inevitable I will require a new car in months if not only weeks. It feels as though this is and extremely poor response and is stressful to consider given this will mean I’m stuck in the trust deed for additional years just to pay this off when this was originally set up to give relief from the worry of debt. I’m now I’m starting to feel like the trust deed could be a never ending trap where I can’t afford a reliable car outright and the IP wants to extend and this is a worse feeling than how I felt with the original debt.