Hi on track

thanks for the post.

I think people look on sequestration as a more difficult and more complicated option, however the process is very similar to trust deeds.

The main difference between both t=is that in Trust Deeds you need the creditors agreement, however in sequestration you dont.

Mark

Thanks for posting on track,reassuring for myself, waiting to get an application submitted and approved-hopefully.I thought I'd never see sequestration as a good thing, maybe I won't - but it's looking better than the past couple of years. I too considered all options, several times with several providers until it was obvious doing nothing was the only option I didn't have. Numbers-wise, there are more people here who've been able to do trust deeds but the process seems very similar in practical terms.

Part of our advice process is to explain all of the options that are available to an individual after we have gone through their circumstances.

Even over the telephone there can be an audible intake of breath heard when the word bankruptcy or sequestration is mentioned. Advisers don't generally get the same reaction when trust deeds or the debt arrangement scheme is mentioned.

I think this is based upon perceived stigma and some of the myths that go along with the process (house cleared, advert in local paper, automatically lose your home, cannot have a bank account etc).

It's a real shame as for many people bankruptcy/sequestration really is the best solution. For example, there have been many members over the years that have written here about how they committed to make payments into their trust deed which weren't actually affordable in reality. Most commonly this has been done to "twist" their circumstances to fit a trust deed rather than to find the best solution for that individual.

It is true that there are many similarities between trust deeds and sequestrations, and sequestration may well be the best option for many people.

It all comes down to what is affordable at the end of the day - for those that have enough disposable income to get a trust deed agreed then there is little to choose between them. However, I am pretty sure that if I was in that situation I would look towards a trust deed first, with bankruptcy as a last resort.

I agree it comes down to individual circumstances, I was in the position of being self employed with spiralling debt, its easy to say that you shouldnt get into that position but with employees wages, rent, rates and running costs its a treadmill that you just cant stop at a whim. A trust deed would have been difficult as without a business i would not have an income to pay trust deed payments. The Bank and suppliers would make it difficult to keep on trading as loosing my main source of supply would fundamentally change the nature of he business.
After getting yet another tax demand (on christmass eve of all days) I had to decide what my options were, as above doing nothing was not an option, I had put in more money than i really could afford and had worked 50 weeks 50 hours a week for a year for less than zero income.
Having a few days over cristmass gave me time to do some sums and be really honest with myself about the future.
after that it was simple!!