A very sensible change I reckon. In some quarters there are worries that it may open the floodgates in terms of numbers of bankruptcies, but surely it must be better than people being left in limbo, getting hassled by their creditors for months or years whilst waiting for legal action to be taken so that they can apply for bankruptcy?

The other change effective from next week involves tweaks to trust deeds to allow for equity in a person's home to be potentially excluded from being part of the trust deed. However, in practice I think this will only be possible with fairly low levels of equity as it would still be reliant on creditors agreeing to allow this exclusion.

Hi Kevin

I think you are correct and to be honest, dont see the point of the equity amendments. If there is equity and the creditors object because the wish this as part of the deal, then they will object and the TD moves to sequestration to allow them to get it anyway.

Reading through the legislation, there is a requirement to advise the creditors on the equity position, so it will be interesting to see what TIX and other's feedback is to this.

Mark

I wonder if one of our experts might be able to explain a little about who TIX are and their relevance to the trust deed process?

Hi TDA

Sorry, guilty of using Jargon.

Very simply, up until about 2-3 years ago Trust Deeds were dealt with by the lenders themselves. Now the majority of lenders use This Insolvency Exchange to make decisions on their behalf.

This has made life easier for the IP as there is a general approach to agreeing or disagreeing, whereas before each lender had their own criteria.

So as long as we follow their guideline on Trust Deed proposals, then the chance of success is very high.

Personally we work hand in hand with TIX and we have little or no issues as they have always been very efficient and you can actualy speak to them if required!!!

Mark

Hi,

I think my only route is sequestration, who can help me get a 'Certificate For Sequestration'?

Kind Regards

Hi valley,

My understanding is that a Money Adviser or insolvency professional will be required to help you with the issue of a certificate of sequestration.

Money Advisers might be found via your CAB or your local Authority.

It remains to be seen if insolvency professionals will assist with this process as I understand that it isn't permissable to charge any kind of fee for assistance with this.

Bear in mind for now that this process is extremely new (it starts today) and those who you get in contact with about it may be "feeling their way" through the process for a while.

Thank you for the quick reply,

I have contacted my local CAB

Kind Regards