Hi weebill.

I'd think there's some chance this lump sum could be used to pay off the remaining equity responsibility and finish earlier than expected.

One to speak with your trustee about.

It's a difficult one, weebill, but to play devil's advocate here, isn't it reasonable for your wife's creditors to expect that these funds are paid to them?
If it was you that was owed money by someone else wouldn't you expect that any funds that were available would be paid across before you had to write off any remainder?

Hi weebill,

It's a little bit of a tricky one and probably something that only your Trustee could really answer.

As Kevin points out, your creditors are entitled to receive as much back as possible within the period of the Trust Deed. The initial proposal at the start is really based on them receiving a minimum return back and writing off the rest of the debt that you both owe them. If there is a chance for your Trustee to increase this return then they need to look at that option.

If for instance your wife had been receiving her correct salary at the time she entered into the Trust Deed that could have meant that she had more of a disposable income and therefore could have paid more of a monthly payment per month.

I know it's not ideal but it's something that you will need to speak with your Trustee about. You may find that they are prepared to allow your wife to retain some of the funds or as TDA suggested the Trust Deed could be closed off earlier.

Let us know how you get on.