Welcome to the trust deed forum Rossm1256.

I apologise but I think you'll probably be hoping for a different answer than the one I'm writing here.

If you come into money you're required to let your trustee know and pay it over to help repay your creditors. This is part of the basis that your creditors agreed to your trust deed becoming protected in the first place.

You shouldn't have been advised that extra money received could be paid to family. That's factually incorrect I'm afraid.

Even though we can all understand prioritising family repayments from an emotional point of view, family debts in reality do not have any preference legally or in terms of your trust deed. They're just another debt and all creditors should be treated equally and in line with the terms of the trust deed agreement.

Unfortunately the way this is probably going to have to be resolved is by an extension to your trust deed until the amount you received from the cashed shares has been paid in.

If you refuse to pay, your trust deed is likely to be failed. The end result is that you'll no longer have the protection of the trust deed and will become directly responsible for repaying your creditors again (minus any dividend that they receive from your trustee). Thousands of pounds that you've paid into your trust deed will have been consumed by your trustee's fees and costs and will therefore not help to clear the debt.

There's also a risk that your trustee might seek your bankruptcy. This could leave you with a further four years of paying over your disposable income every month again (and put at risk certain assets that you might own).

How much money are we talking about with the cashed shares? How much is your current trust deed payment?

Thanks for the quick reply. That is the answer i expected to be honest. Hoping for a different solution.

So i pay £110pm into the trust deed. My overall debt was around £10k. And the cashed shares i received was just under 3k.

If i do make an extention to my term i am looking at just over another 2/3 years to clear this?

Thanks again for your advice

R

Hi Rossm1256,

Hopefully you'll be able to arrange a fair and workable solution with your trustee.

I'd only be guessing exactly how this can be resolved, it's their decision that matters.

It is very possible that your trustee may be looking for the £3000 to be paid more quickly than 2/3 years I would reckon. As TDA says, hopefully there is a solution agreeable to you both.