Hello SB and welcome to the forum.

What is the payout for? This may make a difference to how it is treated.

It's unlikely that it will bring your Scottish Trust Deed to an earlier end unless it covers all of the debt included in the Trust Deed originally.

However... in certain specific circumstances it might not have to be paid into the Trust Deed.

Thanks fo rthe quick reply

The money is due from a PPI that was taken out at the same time as our secured loan before we entered the PTD.

Form has just come in so not sure when we receive it - We are quite happy to hand the whole amount over.

I think in that case the money will need to be handed over, though this should obviously be discussed with your Trustee.

No harm in asking if it will reduce the term though SB!

The following thread from March last year explains a little more about how assets acquired during a Scottish Trust Deed might be treated:

http://www.trust-deed.co.uk/forum/topic.asp?TOPIC_ID=43

Hi Sillyboy

Was the policy taken through your mortgage provider? If so you might find that there are strings attached to say that the funds go directly into your mortgage to cover your payments, so you might not receive a lump sum after all but still get the benefit of it.

Just a thought - would be interested to know how things pan out so keep us updated!

Thanks

Hi Sillyboy

I agree with Kevin, however if for any reason you did receive the payment, hopefully you would be able to reach an agreement with your Trustee as to how much you would require to pay to your Trust Deed. As TDA states unless the payment was sufficient to pay your debts in full plus statutory interest, I suspect that your Trust Deed wouldn't be brought to a close early.

Julie

Hi sillyboy

this will possibly be regarded as aquirenda ( assets obtained during the trust deed period) and would fall to be an asset of your estate. You mentioned that you had taken out the Trust deed, but that 'we' had taken the secured loan. It may be argued that your partner is due one half share of any refund.

Mark

Thanks for all your replies

Will complete the form and see what happens - will let you know.

Just thought I would give an update -

Insurance claim paid out - Trustee let me keep some (less tha 0.5%) -But they would just as wel taken the whole lot.

I am having major problems with my car at the moment and I was hoping that you can advise what my options are with regards to the paying for the repairs.

Do you think my TD will allow me a payemnt break for a month ?

My TD will be finished next year (After they extended it after my last review) although my hours have been cut on my 2nd Job

Sorry moan over - but any advise on my car problems will be appreciated

Hi sillyboy,

I think you should contact your Trustee to discuss this. If you need the car to get to work (or for some other fundamentally important purpose) I would be surprised if they would not allow a payment break for a month, with a month added onto the Trust Deed to make it back up later perhaps.

Absolutely agree with TDA above.

Once in your Trust Deed it is vital to communicate with the appropriate firm and they should really be your first port of call.

As advised it is very likely that the firm would allow a payment break. One slight caveat would be that they may be reluctant to provide a break if you have a poor payment history to them.

Give them a call and let us know what happens.

Good luck

Hopefully with a significant insurance windfall just paid into the Trust Deed they will be minded to help.

Thanks for the reassurance

Trustee wants to see a qoute before deciding what to do.

I explained at the time of the insurance claim that the car would need some work done on it but hey ho

Never missed a payment in al the time i have been in TD

WILL SEE WHAT HAPPENS