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Topic starter
28/02/2012 10:39 am
I thought the standard duration of payments for both PTD and sequestration were 3 years.
A friend just gained a certificate of sequestration but seems to have an agreement to pay 48 months from disposable income as well as having 48 payments made by a 3rd party to satisfy the IP's release of equity on several properties @ £500 each.
is this just a flexible feature that's being offered to spread the payments over 4 years and include payments for equity release on the same timescale? (Assuming the acceptance of paying £500 per property at the outset)
28/02/2012 11:09 am
Hi Pamjo
An individual is discharged automatically on 12 months, however the trustee can seek his discharge once he has completed the realisation of the estate ( gathered all the assets etc)
The 48 months is very very unusual and it looks as though they are attempting to apply some trust deed rule to the sequestration. There is no minimum dividend required in sequestration, so I wonder if this is yet another feeing exercise. From the info, I see no reason why 48 months should apply.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
28/02/2012 12:15 pm
Is it stated that the trustee should take a certain amount of time to gather the assets. Presumably, any new funds after the individual is discharged should still be forwarded to the creditors, for how long after the individual's discharge? Does the payment schedule agreed dictate that?
28/02/2012 2:43 pm
Hi Pamjo
It's difficult to comment without seeing the figures, but I would guess the non equity payment could be done over 3 years quite easily. I am unsure if there are other assets to be dealt with, if not then I cant see the reason for 4 years.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
28/02/2012 3:15 pm
The debtor in a sequestration only has a responsibility to pay a contribution from income for a 3-year period. I can understand a longer period if there were significant assets being "bought out" by instalments on top of this but is a 4-yr period really necessary to cover a few properties at £500 each?
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Topic starter
28/02/2012 3:18 pm
I'll get more specifics.
Topic starter
31/03/2012 3:43 pm
The combined cost of the fees and the Equity Release had to be split over 48 payments vs 36 to be affordable is the answer I've been given.
Topic starter
31/03/2012 3:48 pm
And none of the properties had any equity.[}:)]
01/04/2012 9:36 pm
Hi Pamjo.
That does sound, in diplomatic terms, a bit odd.
Do you know whether the creditors stand to receive anything from this extra year of contributions?
I could offer a guess on that one...
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Topic starter
02/04/2012 12:03 am
i'M GUESSING YOU'LL BE RIGHT!!
