In a scenario where Mr Smith owes £40k and one of his creditors have registered an inhibition and he applies for DAS. Does DAS ( like sequestration) kill all rights to the inhibiting creditor or does the inhibition stand.
I know that the DAS may exclude the house, however if the DAS is accepted and he tries to sell his house, does the inhibition stop the sale or not.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
As far as I am aware the DAS does not cut through exhisting dlligence Mark. However there will be more experienced DAS advisors on here.
Rob is not currently posting in the Trust-Deed.co.uk forum.
DAS puts a stop to new diligence.
With existing diligence, DAS will lift an arrestment. It won't lift an inhibition.
There can be some technical points around timing, because there are several periods of DAS 'protection' from diligence - intimation; the time between the application going to creditors/the DAS Administrator and the DAS being approved; the time after the DAS has been approved.
The inhibiting creditor would need to check that the commencement of the inhibition didn't happen during one of those periods of protection, to be sure that the inhibition is competent.
If it is competent, then the inhibiting creditor could stop the sale of the house.
I'm not sure if they'd be able to renew the inhibition further down the line, if a DPP was in place.
I know a trustee can renew, but have a feeling the creditor needs to re do the inhibition.
Something I'll check out as it gets mega complex and covers about 4 bits of legislation all interweaving!!
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
I'm not certain, but think that an inhibiting creditor could renew their inhibition if it is due to expire regardless of a DAS DPP being in place - as long as the inhibition was first registered before the debtor was protected by their DAS.