Welcome to the forum Amylou92.

I think that all you can do at this point is to provide the requested documents and to be entirely open with your trustee about the gambling problems that you're experiencing.

We've never heard of anyone going to prison for anything like this during a trust deed.

There is an issue though (as you have openly identified) in that this was an opportunity to repay more of what's owed to your creditors, and because you're obligated to inform your trustee if you come into a sum of money.

Different trustees might see this in different ways, and respond to it in different ways, so you'll need to work that through with them directly. I'm afraid we'd just be guessing if we offered a view about how this will work out from here.

Thanks for replying. Yea I though as much. I’m so worried and Iknow it all my own stupidity.

Also am I best to send documents and just wait for a response or send documents and call to explain myself?

Hi Amylou92.

I think if the winnings and subsequent spending are apparent on the bank statements it would be best to provide your explanation at the earliest stage possible.

As you acknowledge that your gambling has become a problem, letting them know that you're prepared to take action to address this may also be helpful.

Whatever is to happen in respect of your trust deed, tackling the issue with gambling will surely make life much easier and better for you in the future. I recognise that this is much easier for me to write that it may be for you to do, but I really hope that you find the strength (and support) to do this.

Hi Amylou92

First thing to say is that you can rest assured that you really don't have to worry about prison. The worst that will happen is either that your Trust Deed is terminated without you being discharged, or that you are sequestrated instead, or that your Trust Deed is extended to compensate for those funds to some degree.

I agree with Trust Deed Assistant that honesty is always the best policy and if you are brave enough to admit the problem and seek help with it then that should hopefully go a long way towards your Trustee viewing this matter sympathetically.

At the end of the day, the winnings were just a temporary situation brought about as part of the same problem that led to the monies being lost again and I would argue that they need to be viewed in that context.

Thank you so much. I’m going to make the dreaded phone call today. Thanks again.

Surely if your bank statements show money coming in from gambling then back out again the same way,then the status quo returns? Are you not allowed to do this?

Hi Rob8.

If you come into money then you're obligated to disclose it to your trustee.

No different to buying a lottery ticket and winning a material prize.