Hi deebear27,

When you enter into a Trust Deed you effectively transfer any assets you have at that point in time into the Trust Deed including any inheritance and assets which you could acquire during the period which can be used to pay back more of the debts that you have. This includes potential PPI compensation.

If you are still in your Trust Deed then the money will be paid from the bank to your Trustee and this money will then go into the overall pot of money that your Trustee controls for your creditors. It effectively means that more of your debts will be repaid.

The bank has an obligation to write to your Trustee to inform them of the PPI payment and your Trustee may have already been looking into this.

Is your Trust Deed still active and on-going deebear27?

They have a duty to tell you that they are making this payout I suppose, but also to pay it to your trustee if you are subject to a Protected Trust Deed.

As David says, this is how it works, any funds available during the Trust Deed period need to go into the pot to be shared out between all creditors by your Trustee.

Thank you both for getting back to me and clarifying what happens.I find the paperwork sometimes confusing hence the request for help lol.I am still in my trust deed and it should be due to end in September 2016.

It can be a little confusing especially as it's something which you have never been in before. Don't hesitate to ask any questions.

How have you found the Trust Deed process so far deebear27?

It's been fine so far no complaints, was a huge weight off my shoulders to finally address my financial issues.I will definitely be back on the forum looking for advice when it ends