Welcome to Trust-Deed.co.uk Kaymick.

I can appreciate that your finances must be very difficult following the redundancy.

With tax rebates such as this I suspect that the trustee is probably well within their rights to retain the full payment for the benefit of the creditors if they choose to.

Hopefully one of our experts can explain a little more about what common practice would be with this type of tax rebate lump sum payment...

He finally got a call back & they've kept it all......I understand it from a legal point of view but it is still a bitter pill to swallow. If my husband was in new employment then of course I could accept it but given the circumstances I do feel that it is unfair to say the least. My husband worked so hard for that money & through no fault of his own we have found ourselves in these circumstances. When he was made redundant obviously our live style changed hugely & we have suffered both mentally & financially, forced to take steps we had no choice over...we gave our car back to the finance company, cut all corners we could but hence the trust deed as we were no longer in a position to meet our financial commitments. I know we are not alone due to the current climate & my sympathies go out to other families who will find themselves in the same position as us. Even a few hundred pounds would have made such a difference. We've never claimed benefits in our lives & our eyes have been well & truly opened to a system that does not work. I cannot believe some people choose to live their lives like this. My husband will do his upmost to return to work to provide for his family. But to be penalized in the meantime seems unjust. The tax my husband paid was ludicrous as he was in the higher tax bracket & to get nothing back in return...........

It's a really unfortunate situation, Kaymick, and ideally your trustee would look at this a little more compassionately.

Unfortunately, as trust deed assistant says, they are entitled to keep this money if they choose. The argument from your creditors point of view would be that if your husband wasn't paying too much tax then those funds should have been going into the trust deed at that time anyway in the form of higher contributions.

Hi Kaymick,

I'm sorry to hear about the difficulties your having regarding the change in your circumstances and the communication with your relationship manager.

It's unfortunate but your Trustee can look to retain all of this money for the benefit of your creditors. On occasion an agreement can be reached for some of the funds to be retained by a party to cover essential costs but this is up to each individual Trustee and at their discretion.

Have you considered what the next step could be should your husband not be able to find suitable employment within a reasonable timescale to allow the payments to the Trust Deed to recommence?