Miss

[Laura105]

Hi there
I'm currently in a trust deed. I had an accident 2 years prior to having my trust deed. It is now nearly settled. It is purely personal injury nothing else no loss of earning etc. I have been told that my ip will not vest any interest in this as its a personal injury claim and there is no loss of earnings attached to it which would be seen as a windfall. I'm quite worried as I desperately need the money.
Thanks

[des8]

Re: Miss

Hi Laura,
Are you in Scotland?
This site is basically England and Wales orientated, so you may not receive many responses.

My limited understanding is that if, whilst in a trust deed, you come into a windfall you have to inform your insolvency practitioner
This is because the Trustee must reclaim as much as possible for the creditors.
I would have thought an insurance payout would have been considered a windfall, but that is just a personal opinion
However in the English equivalent (IVA) creditors cannot touch insurance payouts for ipain and suffering, so perhaps your info is correct

I don't know if it is possible to delay payment of the insurance claim until after you and your IP have been discharged from your trust deed

[Unregistered]

Re: Miss

Hi there

Iva is a trust deed in Scotland. I still have a good few years remaining in the trust. It's my understanding that because it's for pain and suffering they legally can't touch it.

Was just wondering if anyone knew anything regarding this.

[des8]

Re: Miss

Looking around the net, there seem to be differing opinions.
I think you need to speak to a Scottish lawyer

[Unregistered]

Re: Miss

I'm uncertain of how they can find out about the payout

[des8]

Re: Miss

Be careful about concealing it as I understand penalties for not declaring it may be revocation of the TD for non compliance with its terms .... and then bankruptcy!

[Unregistered]

Re: Miss

I honestly don't know the best think to do. I don't have any assets so bankruptcy doesn't bother me. I feel I was kinda blind sighted by the td

[des8]

Re: Miss

I have just read another discussion where it was stated that aquirenda automatically vest in the trustee and concealment made it a criminal matter punishable by a fine or prison or both!