Hi Kenny

I don't know for sure but I believe compensation awarded is treated differently to windfall gain. One of the experts will know but I guess it would be down to your actual IP. I'd argue that the compensation was awarded to cover any lost time/pay from work, pain suffered from injury, rehabilitation etc.

BTW welcome to the forum

AB

Hi Kenny
I don't know if this helps, but I was in the middle of a personal injury claim when I started my TD (my injuries were part of the reason I ended up in the TD due to loss of earnings but that's another story). Anyway, I told my trustee at the beginning and they said that if a payout was received it would go into the trust. (In the event nothing was offered during the term of the TD and I was discharged three years later.)

Hi Kenny

It will depend on the nature of the compensation. Your trustee will almost certainly claim an interest, however it will depend how any award is broken down.

If part is loss of income, then this would belong to you subject to any payment required by the trustee. If it was rehabilitation etc, then you could argue that this is outwith the reach of the trustee.

Mark

Hi Mark,

How about if the loss of income relates to a period prior to the start of the trust deed?

Would that make a difference?

Hi all

The break down was partially explained to me yesterday, it was mostly loss of earnings and physio that I had for 4 months.

The accident happened in April last year and the trust deed was signed 15th of this month so it relates to a time over a year before the trust deed.

On another note I forgot to mention that I was in a debt management plan for the last 2 years. Decided after some research that a trust deed was the way forward. I used CAB for that and a trust deed was never really explained to me other than not to do it.......

So is claim really realtes to the time I was in the debt management plan.

Hi Kenny

It makes no difference, the key time is the date the payment is awarded/paid.

Mark

Hi again

Thats kinda what I was thinking. So it's really up to the discretion of the trustee how much, if any, I keep?

Thanks

Hi Kenny

Pretty much. Hopefully they will look at this and form a balanced view.

Mark

I'd have thought that the trustee would probably request that the compensation funds be paid in to the trust deed. I'm presuming your earnings are no longer affected by this accident and that your physio is now finished, so there is no real justification as to why you should be entitled to keep this money.

You say yourself that the crash was part of the reason you ended up in financial strife, so it stands to reason that the lenders you had to rely upon at that time should be entitled to share in the proceeds of your claim now that they are not likely to be repaid.

Hi Kevin, thanks for reply.

You have confused me with someone else I think, I never said the crash was the reason I had financial difficulty........ I was in a debt management plan before the accident happened.

What I really need to know is the justification for the trust deed to request the payment when it refers to a time over a year before anything was ever signed.

I was off work work for a while and received physio for months. I, myself, covered the cost of my repayments and never miss a thing during this.

Hi Kenny

As mentioned earlier, the key date is when the funds are awarded to you. That's when the funds crystallise. The time of any accident etc will not be looked at.

Mark

My apologies, kenny - I had been looking at BottomlessPurse's post earlier in this thread.

However, the answer is still the same - if you are receiving a windfall during your trust deed then you are likely to be asked to pay it over I'm afraid. Your creditors have agreed to write off whatever debt is not paid off at the end of the trust deed, but it is only on the proviso that whatever can be paid in during the term of the trust deed is paid in - including any lump sums that might come your way for whatever reason.

Hi again

Just as I though unfotunately.

thanks