Hi Pedro

Technically there is the possibility as he's not been discharged, however don't worry as I think any claim on this is very very unlikely.

Mark

Hi Pedro

I agree with Mark that if your husband hasnÔÇÖt been discharged, there is the possibility that your Trustee may look at the redundancy payment. Has your husband advised his trustee about the redundancy? If so what have they said?

Julie

thanks for your replies

he has not told the trustee about the redundancy as we see it we have paid all the payments agreed within the period and this is four months later. if they could take a cunk of this why would they not also be interested to see our earnings over the past 4 months too, which has obv left us with much more available income since ending the payments.. if that makes sense?

I think a windfall is a little different to an increase in disposable income following the end of the monthly payments pedro.

It's one of these situations that probably looks a bit different depending upon where you are sitting.

From your husband's point of view the payments are completed and he has done all that he should to bring the Trust Deed to an end. It isn't his fault that it's taken a while for the Trust Deed to be closed so it would seem very unfair if the windfall had to be paid over.

From a creditors point of view you'd probably want the money to be paid to help repay some of the debts if the Trust Deed has not yet been brought to closure.

From a Trustee's point of view I think you'd be looking to meet your obligations to the law, your regulator, and also to fairly balance the interests of creditors and the client.

Mark seems to think that technically the money might have to be paid over but that it's unlikely that this will be requested. Julie is also indicating that a possibility exists that the Trustee might feel that they need to look at this payment. You clearly have a pretty good moral argument that it should not be.
Unfortunately that creates some uncertainty that means we cannot give you a clear answer... it will have to come from the Trustee.

It's worth noting that even if the worst were to happen it should not affect the "statutory" element of any payment (the amount we're all entitled to by law if we're made redundant). It should only affect any additional amount due under beneficial contract terms or as a result of negotiations.

I'm really sorry that there is a lack of clarity on this but do hope that common sense prevails with the outcome.