Welcome to the forum Bichy69.

If your trustee has not yet been discharged (which happens after your discharge - sometimes a long time after) then the PPI money is highly likely to go to them to help repay your creditors.

I'm very sorry to hear about your accident and fully understand all of the personal reasons why the proceeds of the claim are needed. The potential issue with this is that the source of the claim, the accident, happened before you were discharged. My understanding is that the claim proceeds (or some of the claim proceeds) could potentially fall into your trust deed for that reason.

The questions for you here might potentially relate to whether your trustee is aware of this claim already, whether someone (such as a solicitor) feels professionally obligated to check with your trustee before paying out a claim to you, whether the trustee believes you're entitled to retain some of the claim proceeds, whether the trustee has discharged themselves before the claim is paid, and your own attitude towards making the trustee aware if you consider you have a moral or contractual obligation to do so.

I'd suggest waiting to see what Kevin and/or Sarah think about this situation. They work for firms handling trust deeds and may have direct experience of similar scenarios that have arisen in the past.

I haven't told my trustee as didn't know I had too as my claim was in Feb18 after I finished on 23/12/17. Received a letter on 13-15/4/18 to say I received form 5 and will received my form 6 if there is no creditors object to my release within 14 days of issue then receive form 7 once update of ROI and trust deed is complete.
My accident claim lawyer hasn't mentioned anything about as far as I know but was checked if there was confidence of care or something in those words to make sure they weren't a client. I heard that you can get your claim in a trust to pay out per mth ?
I still paid my monthly fee while I was off work on ESA as didn't want to let it last any further after 4 yrs and never missed or late with payment even though we struggled in last 8 mths of paying but it was worth clearing the debt.

Ps meant to say thank you for your reply so quick.

Hi Bichy69

Sorry to hear about your accident and how it has affected you. As you will see from my answer below, this is quite a technical legal question. Regardless of the technicalities, I think the first point to make is that your trustee has some discretion as to how they choose to act in this scenario and hopefully for your sake they would take a sympathetic viewpoint given the circumstances.

I note that you made the claim for your accident prior to your discharge from the trust deed. As such, if there is a payout resulting from the claim and your trustee is not yet discharged at that point then they probably could seek to gather that in for the benefit of your creditors.

There was a case which went to the Inner House of the Court of Session in 1998 (Coutts trustee v Coutts) which established that it is the date that the claim is made that is relevant - not when the claim is paid out - and that any subsequent proceeds automatically vest in the Trustee. This was in relation to a sequestration, but I think the principal would be the same in a Trust Deed.

It may be important whether your Trustee is discharged yet or not too, in the same way as for a PPI payout. If they are discharged already, or are discharged prior to the claim being settled and paid out, then I think they would currently struggle to assert that they have the right to gather in those funds. However, I guess that the outcome of the Supreme Court case regarding PPI funds after the trustee's discharge may well be relevant in this context too.

I hope that makes some sense? As I say, it's a bit of a legal minefield.

Hi Bichy69.

I'm really not saying what you should or should not do - that's a matter for you alone. I can also totally understand from the course of events that you describe why that has not been contemplated.

I guess if your trustee has been discharged there's no real issue here anyway.

As mentioned in my last post, I think it would be good to get a different view from Kevin or Sarah on this when they next visit. Their perspective may well be quite different to mine.

Was it a conflict of interest check that your solicitor did? That's pretty routine and normal if so.

Oh... seems like Kevin and I were writing at the same time.

To the TDA thank you I thought that as had both replies at same time. Thank you TDA and also to Kevin is it worth telling my trustee about accident as my lawyer said can take up to 3mths before she can hear back from insurance company and most insurance companies like to hold out as much as possible, by then my trust deed 6-7 could be in, so should I in form trustee ?

Ps to Kevin the letter said it could be over in few mths or quicker should I contact them and ask if my discharge is been done yet ?

Hi Bichy69.

They should let you know, but you can monitor this yourself on the 'register of insolvencies'. Just type that into Google and you should be able to look up your own case details and progress.

It provides dates for your own discharge and that of your trustee (if they've happened).

Thank you

Hi I've spoke to them about my form 6 and there in the process of paying my creditors and should all be completed by mid July the creditors have 60 days to appeal but don't think that will happen.

Quick question should I speak to my claim lawyer that I'm worried about if my claim is won that I have a trust deed and won't be cleared until mid July finalise and worried that the money will go to them or just wait as will refuse the first offer as I could have died in accident and it's more for family than me in case anything happens to me later on and there supported.

Hi Bichy69.

I'd feel uncomfortable about offering advice on this question.

The theoretical answer from Kevin was that because the claim came before your discharge the payout might vest in your trustee. In theory therefore the date of the payout isn't relevant.

In practical terms, there may be a question as to whether the firm paying out the claim - or your solicitor - runs an insolvency check on you before making the actual payment to you. In this instance, whether or not the trustee is actually discharged might influence how this all works out.

Professionals, such as solicitors, often have duties and obligations to conduct themselves in certain ways. I genuinely don't know whether a solicitor might feel obligated in some way to inform an insolvency practitioner that a claim was pending if they became aware of the trust deed.

Ok thanks