Hi cb85,

How much debt do you have?

Also, how much is your PCP payment per month for the vehicle?

A car which is reasonably required for work purposes is allowed and in the vast majority of cases there isn't a problem with someone paying a PCP payment as long as its not a substantial payment per month.

Have you spoken to a qualified advisor about Sequestration to find out exactly how this works based on your situation?

I have about 47k, £20k of this is a loan with the credit union. My car payment is £350 per month. I haven't spoken to anyone yet just wanting to get all the information I can before doing that.

Hi cb85,

In my experience credit unions normally object to a Trust Deed.

Not all firms that promote debt advice will take on and handle a Sequestration case so when you do reach out for some help and advice make sure that the firm will handle your Sequestration. My firm are the number 1 provider of Sequestration services to the Scottish Government and have been since 2009. I'm sure Kevin the other expert on the forum would be able to assist you also. If you would like, you can reach out to either one of us for some advice. In the space of a 15-20 minute phone call we could put your mind at ease.

Have you looked at your budget to see what you can afford to pay per month? Under a Sequestration if you can afford to make a payment per month then you pay this for 4 years. It's called. Debtor Contribution Order and is set by the Accountant in bankruptcy. I wouuld send them your application along with your bank statements, payslips and an income and expenditure for you and they review this and then set the payment which you pay. I'd be able to advise you what you would need to pay per month before we submitted your application.

There is an application fee of £200 which you pay directly to the Accountant in Bankruptcy.

Would entering into Sequestration impact you job?

The best thing to do is readh out to an Expert for some one to one advice as we can put your mind at ease pretty quickly.

I think I am best to speak to someone about my options. If I speak to someone it won't mean creditors are made aware of what I am thinking about?

Hi cb85.

It wouldn't mean that your creditors are made aware.

This only happens when you actually appoint a trustee to handle the debt solution that you've been discussing with them previously. You'd only make that formal appointment once you were sure that you were doing the right thing after your initial discussions with them.

Hi cb85,

Like TDA has advised your creditors won’t be notified about anything until you are formally in Sequestration.

An informal chat with an Expert remains private and confidential between you and the Expert.

Speaking with Kevin or I for example would allow us to fully review your financial circumstances and go over a very thorough income and expenditure to ensure that any monthly payment that you need to pay is affordable and sustainable for you and also fits within the limits of the Common Financial Tool. All of this is done well in advance of your creditors being notified and even after doing all of this, if you decide you don’t want to proceed then no one is any the wiser. I could probably do all of that with you in the space of 15-20 minutes on the phone and reassure you.

With £47,000 of unsecured debts you have done the right thing in reaching out for some help and advice. The positive thing is that you do have solutions to help you deal with your debts.

Do you have any other assets other than your car such as a house?

I don't have any assets. I live with my husband in a privately rented place. We don't have any joint debts, would this impact him? Is there a number I can call to discuss this further with one of you?

Hi cb85,

Your circumstances all sound pretty straight forward and a Sequestration if that’s your chosen route should be simple and straight forward.

You husband will not be affected if you have no financial accounts that are linked together.

If you would like to speak with Kevin or I for help and advice you can use the “contact me” button at the bottom of our profiles/posts and we can take it from there.

I'd advise slightly more caution, cb85, particularly regarding the effect on your car. There is undoubtedly a risk in a sequestration that the finance provider might choose to terminate your agreement and ask for the car back, so you need to be aware of that.

It may make sense to try and switch the finance into your husband's name instead prior to any sequestration application, thereby avoiding that potential problem.

It used to be VW Finances policy to cancel agreements and repossess vehicles if they became aware of bankruptcy, IVA or Trust Deed. Not sure if this is still the case.

I can remember reading that some time ago Certiorari.

I don't know what the current position is, but these things can change over time.