Welcome to the forum ad2001.

As you seem to be aware, this type of windfall has to be declared during a trust deed. It's part of the deal that you offered to your creditors and which they chose to accept.

I'm not 100% sure of what your trustee's options will be given that you've been discharged, but hopefully Mark, Kevin or David will be able to comment on that when they read this thread.

They may seek to have the company that paid you the PPI pay them again. The company that issued the payment probably should have carried out an insolvency check before making the payment to you.

Thanks

Any advise would be appreciated

Hi ad2001,

How much did you receive from the PPI payout?

I can't remember the exact amount now as it was about 2 years ago, maybe 3,000

Hi ad2001,

That's a large sum of money for you to receive and not pay towards your Trust Deed.

I suspect that you will receive a letter from your Trustee asking for the repayment of these sums once it's discovered that you received it.

In similar cases that we have had whereby the creditor has paid directly to the client we have pursued the creditor and they have then paid the funds to us. What normally then happens is the creditor will pursue the client for the repayment of the funds.

I think you will be looking at having to come up with a proposal to your Trustee. If not, your Trustee could consider legal action to recover the funds.

We haven't had to consider legal action yet for any of our cases as in the few which we have that received the funds directly have arranged a repayment plan with us.

thanks David

Would the above still apply if the lender wasn't part of the trust deed?
This was actually a secured loan which has now been paid off

Thanks

Hi ad2001.

I'm afraid that's not relevant here.

Any lump sum like this would need to be declared (and likely paid over) under the terms that you proposed to your creditors.

Most of it was actually used up to pay make a final payment on the secured loan.