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Financialhelpneeded
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5 Posts

Posted - 05 February 2018 :  15:46:07  Show Profile  Reply with Quote
Hi, I have a protected trust deed due to end in May this year. I have been off work ill for the past 6 months with ill health and as I need an operation it's likely I won't return to work for the next year or so. It's company policy to give a lump sum when the capability to work process is used (around 20,000 for my length of service). I'm unsure what this payment may mean for my PTD or once my payments are finished in May is thete a time period before the trustee can no longer have a claim on this?

TDA (Debt Adviser)
Trust Deed Expert



12570 Posts

Posted - 05 February 2018 :  15:51:52  Show Profile  Reply with Quote
Welcome to the forum Financialhelpneeded.

I'm very sorry to hear that you have been unwell.

When do you expect that this lump sum would be paid?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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Financialhelpneeded
New Member

5 Posts

Posted - 05 February 2018 :  16:24:49  Show Profile  Reply with Quote
It will be around April/May time.
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TDA (Debt Adviser)
Trust Deed Expert



12570 Posts

Posted - 05 February 2018 :  16:38:18  Show Profile  Reply with Quote
Hi again.

I can see that a name has appeared in your forum signature. If you wish to, that can be removed by going back into your profile and changing it there.

Have you been in a position to maintain your previously agreed contributions to the trust deed while you have been off work?


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Financialhelpneeded
New Member

5 Posts

Posted - 05 February 2018 :  16:52:00  Show Profile  Reply with Quote
Thank you, i've updated that!

Yes, i've made all payments as agreed and up until now have been on full pay from work. I am now on nil pay but hope to make the last 3 payments as planned.
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TDA (Debt Adviser)
Trust Deed Expert



12570 Posts

Posted - 05 February 2018 :  17:06:52  Show Profile  Reply with Quote
Hi there.

Your name still appeared on the second post in the signature so I've removed it for you.

That's created that "empty box" image under your forum name but our web guru will take care of that later!

If you have become entitled to this sum I think we'd have to advise you to contact your trustee to discuss the matter.

I'm not sure that we can really tell you exactly what to expect if you do this. For example, the wording of your trust deed itself might be relevant in respect of lump sums received prior to your discharge (which will occur immediately upon making the final payment) versus lump sums received during the specific four year term (assuming that this is the term).

There might also be some aspects to this where the trustee has to use their judgment.

I'd suggest holding off doing anything until Kevin Mapstone next visits the forum. He'll have a much more in-depth insight into this situation than I have.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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Financialhelpneeded
New Member

5 Posts

Posted - 05 February 2018 :  17:12:47  Show Profile  Reply with Quote
Thanks for your help, hopefully Kevin might be able to give some more information too.
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Kevin Mapstone
Trust Deed Expert



3595 Posts

Posted - 06 February 2018 :  09:18:41  Show Profile  Reply with Quote
Hi there

The timing of the pay-out may be crucial. Your trustee has an interest in any lump sum that you are entitled to collect within 4 years of the date of signing the Trust Deed.

If the funds don't become available until after the 4th anniversary then you should be able to keep them. If the funds are available before the 4th anniversary then you would need to let your trustee know and they may seek some or all of those funds for the benefit of your creditors I'm afraid.

Having said that, even if the Trustee has an interest, you may be able to successfully argue that the funds are required to replace your income while not working and maybe they will let you keep some of it for that reason.

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Financialhelpneeded
New Member

5 Posts

Posted - 06 February 2018 :  14:34:08  Show Profile  Reply with Quote
Thanks very much for this information, I now have it much clearer in my mind and can try to hold things off until after 2nd May!
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