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Scottish Trust Deed Forum
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Topic starter
09/08/2012 6:52 pm
My wife and i both had large individual debts and both entered into individual trust deeds, we also had debts due to familly members who had loaned us money over a few years. As we felt safe in our trust deed we felt a a lot of pressure due to the money we owed our relatives which resulted in my wife suffering a heart attack, luckiy enough we had critical illness cover which paid out a one off payment which allowed us to pay back our famillies the money we were due them which ammounted to over £16k. I am now a bit concerned that we may have breached our trust deed by not reporting this but at the time we did not feel this was as they say a windfall but something we had paid for incase of any health issues. Can anyone advise where we stand with our trust deed.
09/08/2012 10:03 pm
Hi matcam.
I'm afraid this probably is an issue. From the perspective of your other creditors it would seem quite unfair that certain debts have been repaid in full rather than all creditors being treated equally.
There may also be a risk that your trustee will seek recovery of some of these funds from your relatives, though how likely that is in practical terms I'm not sure.
I'm sorry that I cannot offer more positive news.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
09/08/2012 11:46 pm
What would be our next step, we have never missed any payments on our trust deed, can our deeds be cancelled by our trustee.
10/08/2012 9:14 am
Hello matcam.
I wouldn't want to speculate in any detail as to what might happen as this will come down to the view your trustee takes.
I suppose the options for the trustee may include:
Seeking recovery of the cash from your relatives.
Extending the trust deeds to make up for the "lost" sum.
Discharging you from the trust deeds without discharging your debts.
Bankruptcy.
Let's see if any of our experts have a view on this scenario...
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
10/08/2012 9:37 am
I think trust deed assistant sums up the possibilities well.
I think the first step will be to ask you to get the money back and pay it in to your wife's trust deed instead. (I'm presuming the policy payout was to her, which means it is only her trust deed that should be affected).
If this is not possible then they would probably look at extending the term I imagine.
I'm afraid I very much doubt they will ignore these funds, despite the health problems.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
11/08/2012 8:21 am
Thank you very much for your advice, i haven't spoke to my wife regarding this for fear of her health but i will do now thanks to your assistance.
11/08/2012 9:13 am
good luck matcam.
Paul
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
