Hi buggs and welcome to the forum.

Thank you so much for your encouraging and positive words. I'm glad that the site has been useful for you.

Some of our members have been kind enough to post links to this website (and make positive comments about the site) on other forums in which they participate. That has been really helpful in assisting other people to locate this site in the future if/when the subjects we cover become relevant to them.

The experts will correct me in no time if I'm wrong, but I think I'm right in saying that the home could be revalued during the full three year period. Assuming that is the case I think finding the £500 would probably give you some peace of mind if it's achievable.
Best to wait to see if any of the others confirm or deny my comments before making any decisions on this I think.

Hi all

As always, probably best to just rely on the law & guidance. Here are the guidance notes for Sequestrations

If there is little or no equity, can the trustee's share be abandoned for a nominal sum? The trustee should not wait for it to appreciate in value. If the debtor does not wish a formal re conveyance the trustee should consider issuing the letter at Appendix G1 formally abandoning his interest.

Hopefully this provides some guidance. If they state £500, best ask where this comes from and the costs involved in abandoning an assets as described above. Minimal from my experience.

Mark

The trustee is entitled to take action in respect of the house up until the end of the 3-year period. The danger is that they may say that you had agreed to pay £500 at the start but then didn't pay it and therefore they decide to revalue the house at the end...

If I were you I would speak to them now and if necessary/possible pay the £500 rather than regret it further dowen the line.

Thanks for your replies.

It seems that all the IP's, certainly from what I have read on here, seem to take the view that the nominal sum is £500, despite this not being specified in the guidance anywhere.

I will speak with them, and find out.

Thanks again.

Hi bugss.

The figure of £500 is in common usage in this respect.

Interestingly though none of the three companies represented on this site actually charge the £500 where there is no equity at the start of a trust deed.

Hopefully that will spread.

Hi again,

I wish I had done more reaserch back at the beginning.

Did I understand Marks comments correctly, that as there was no equity in the property at the begining, the IP's interests should have been discharged then, rather than wait and see if the property does rise in value and then take a fee (£500) to discharge it?

If so can I challange this and insist that there interest is discharged now, as there is still no equity, there is likely to be some equity at the end depending how the property market goes of course.

Thanks again for everyones help.

Hi Again,
Another question I meant to ask refering to Credit files.

When my trust deed failed, and I was then Sequestrated. Should all the creditors have listed this on my credit file just the once as defaulted?

I checked last night on Equifax, £15 / month is a bit steep though, is there a cheaper way to look at my credit history? I was surprised to get a decent credit score, I was listed as Fair.

I have 3 creditors, one of them have not registered anything at all on my credit file, one of them shows the debt as defaulted on the date the sequestration was granted, and nothing more listed by them since. The third, Cabbot finance who incidently bought my debt from the original company after the sequestration was confirmed, list me as missing a payment every month and the debt increasing. If they keep doing this untill the end of the 3 years it will take another 6 to clear of my credit file.

Is this correct?
I thought my IP would have been checking they are doing this correctly.
It seems not.

Hi bugss.

Kevin seems to be saying that they can take action in respect of the house. As you've been offered the chance to "protect" against that, in practical terms, you might want to try and make this happen. I'm not sure how a challenge could be mounted, though if it were to become a legal issue I'm sure the costs of it would dwarf the sum of £500.

Your insolvency practitioner has no responsibility or role in connection to your credit file. This applies to trust deeds as well as bankruptcy.
If there is innaccurate information reported there you'll need to push your creditors towards making the corrections.

Hi Bugss

Its entirely up to you whether you wish to challenge your Trustee about the £500 to renounce their interest in your property, however if you agreed that you would pay it at the start I'm not sure how successfull you will be. You then run the risk, as Kevin stated above, that the trustee may revalue your property at the end of the sequestration.

On a separate matter, none of us are experts on credit scores, however I would of thought that only one default should of been issued. Your Trustee cannot access your credit file and unfortunately they have no say over what is recorded on it.

Julie

You are discharged from your sequestration after 1 year, as you say, so should find that your credit reports are amended after this time to show that the debts are no longer outstanding. However, it is worth keeping an eye on this and getting in touch with the credit reference agency if this doesn't happen.