Hi dt3005.

If the trustee was not discharged at the time the payment was made to your husband I can see why they'd want this money to be paid over. The trustee would normally be discharged some time after your husband was and PPI payments should go to them until this happens.

If they were discharged then I'm less sure why they'd be in touch now.

The dates seem to be very important here.

I think it will be very important for you to underline to them that your husband has a brain injury, is in receipt of benefits, and presumably would only be in a position to make a modest regular payment if that is actually due? The trustee will need to weigh up whether it's actually in the interests of the creditors to do this, and also the associated issue of whether they'll be able to recover their own time costs as they continue to administer any such payment arrangement.

If your husband is in receipt of benefit income only there's an argument that no repayment amount will be affordable. For example, trust deed providers should not directly use benefit income to fund a new trust deed so there's perhaps a relevant principle to refer to there. You certainly shouldn't commit to any repayment arrangement unless you're sure it is affordable (or you'll simply replace one problem with another).

I wonder also whether there might just be a case for the trustee to pursue the firm that issued this payment to your husband for payment. In some circumstances they might be expected to have done reasonable checks that there was not a trustee to whom these funds should have been paid instead.

Hi dt3005,

Do you know if the Trustee has been discharged from the Trust Deed?

If a Trustee still remains in place and the Trust Deed open for PPI then the funds should have been paid into the Trust Deed if the claim was ongoing via the Trust Deed.

I would speak with the company tonight to establish if the Trustee has been discharged and the Trust Deed completely closed. If it has then I can’t see how they can then ask your husband for the money or to repay this back.

I would also ask them on what grounds they believe your husband needs to pay this back and ask for them to confirm this in writing. Once you receive this you can then take it from there and we can help you further.

He has been discharged. When I checked the AIB Insolvency Register just after he was, his details where there with the discharge date. When I went to check it there to find the date, I can't get any information. Do they only keep it there for a period of time? As he has changed banks, I'm trying to establish if he received the payment before being discharged.

Hi dt3005.

The entry on the register of insolvencies is removed one year after trustee discharge.

The trustee and/or the Accountant in Bankruptcy should be able to provide the relevant date to you.

I went through some paperwork last night, and found his discharge letter. He was discharged on 19/05/2015, and the trustee was discharged on 28/05/2015. The only thing I can't track back is when the payment was made to him, as he no longer has this bank account. I'm kind of in limbo, regarding getting all the info before I contact the Trustee to talk to them.

Hi dt3005,

Try not to over think things and worry too much.

I would ask the them on what basis the believe they are then entitled to chase your husband for the funds if the Trustee has been discharged and the Trust Deed completely closed.

Like I said, ask for them to confirm all of this in writing to you. Once you receive this in writing you can then let us know and we can try and assist from there.

Hi. Since last being in contact, Knightsbridge Insolvency, had used Next Step - First Target Recoveries to recover any PPI that could be used towards the trust deed. They are now chasing my husband for a payment of £1700, that they say is due because the claim was successful. I phoned them yesterday, and spoke on my husbands behalf, and asked them why they were chasing payment 22 months after my husband was discharged. Their first answer was that he didn't fulfil his trust deed, in which I stated he did, and that I had the written confirmation that he and the trustee where discharged in May 2015, and then they said it was because the claim was successful and that was their fee for it. I again asked why 22 months down the line they were chasing this, and that they should have taken their fee from the original claim long before now, and don't know why it wasn't. I explained about my husbands brain injury, and the fact he was on benefits and they said they would send him and expenditure form to fill in. I asked them to sent me a letter stating why they were looking for this payment,and they said they sent my husband the invoice, in which I said wasn't an explanation of why they wanted it the money now. I'm still unsure if Knightsbridge will chase for the remainder of the money, as he hasn't heard from them for a couple of weeks now.

This sounds like it might be something different to what we originally were discussing dt3005.

Most agreements with a claims firm will include provision for a percentage of any award to be paid to the claims firm. Depending upon the precise terms, this might involve additional funds received in respect of the same claims later on. This would apply for users of claims firms whether they're in a trust deed or not.

It sounds like the claims firm might want their cut of the payout.

If this is the case, do you need to pay them? That would come down to the original agreement. You may wish to ask for a copy of it. If necessary you could take that agreement to a solicitor or advice centre to establish whether a payment is contractually due.

I must emphasize though that this is speculation based upon what you've written. If you want advice upon which you can rely, you should reach out directly for some personal assistance from an appropriate source.