Hi debs42 and welcome.

I'm afraid that if you hadn't been formally discharged when this money came through it will almost certainly have been due to your trust deed.

How much was the payment?

hi, the payment was £10,450.00.
I owed my family a lot of money and paid them all off. I genuinely didn't realise I was doing something wrong

I'm really not getting this ppi thing - surely if it was misold then potetially you would have been paying money which you shouldn't have been before the trust deed came into force and may well have conributed to you not being able to pay the debt so why can't you keep it??

Hi heather, I am just so confused. Don't want anymore money hassles. I was just relieved to be able to pay off my family.

Hi debs42.

I'm afraid that this money probably should have been used to help repay all of the people and companies that you owe money to rather than being directed to family debts.

You'll need to weigh up whether it will be best to bring this to your trustees attention or whether you'll risk it and hope it doesn't come to light. However, your responsibility according to the trust deed you signed will have been to bring this type of lump sum to the attention of your trustee.

Hi Heather1.

There is a lot of injustice about this PPI situation. The banks behaved badly so there is sympathy for your view.

However a trust deed commits you to repay whatever you can from surplus income or money/assets that you own or which later come to you (before discharge).

This is the basis your creditors accepted your trust deed on, that you appointed your trustee to work to, and upon which you voluntarily signed the trust deed

thank you for you help, I just took the opportunity to pay my family off. I won't be taken to court over this will I?

Hi debs42.

If your trustee believes that the money should have been paid into the trust deed they're likely to try to recover it one way or another.

Such a lump sum normally "vests" in your trustee. That means its not really yours to give away.

I'm sorry I cannot be more positive but it isn't a great situation I'm afraid.

I understand it's it a great situation but I won't go to prison for this, what is the worst that will happen

By repaying family you have shown them favour over other creditors. This may be a serious breach of your trust deed.

Paul

I understand I have done a wrong thing but what is the worst outcome of this for me, I am concerned now

The trustee may look to recover the money from your family. If they cannot they may refuse to discharge you and require you to make further contributions to repay the sum you received. They may terminate the trust deed and leave you needing to start again dealing with your debts, or they might seek to sequestrate (bankrupt) you which would then involve a further contribution for three years if it were deemed affordable.

These are just possibilities and there might be other outcomes depending upon your circumstances and the obligation your trustee believes that they have.

Of course I don't know whether any of this will happen. You'll need to assess the risks etc.

Would you consider asking your family to let you have the money back to pay over to your trustee?

There is no way my family will give me the money back, t has been a long time coming to them and our relationship has not been good for years because of my borrowing, my situation at the moment is my husband is n job seekers allowance and I am receiving treatment for breast cancer and I am on ssp, because after we set up the trust deed my husband lst his job through the recession we have paid very little into the trst deed

I've been reading about this - don't think any criminal proceedings would occur it would be acivil matter - in the case on bankrupcy trustees could apply for a bankrupcy restrictive order or arrange a bankrupcy restrictive undertaking - maybe the TDA could tell s if this applied to trust deeds also and how it works.