Hi Jayne

If the property has negative equity then this is unlikely to be sold as the Trustee would need to obtain a sum to pay off the secured debts, legal fees and estate agents costs. As it's a sequestrtaion, he may advise that a ?ú500 payment will allow him to discharge his interest in this.

The car will be fine and the arrangement with the Trustee previously will stand.

Regarding the payment, this should be based on income less expenses and there may be room for a reduction as you do not need the creditors agreement in a sequestration.

I'm not too sure how the neighbours will find out as it doesn't appear in the papers, there is no court involvement and the Trustee is unlikely to turn up in a van with sequestration on the side. (Trying to be lighthearted here!)

Sometimes it's the fear of the unknown which creates the panic, but in reality the sequestration will more likely mirror the Trust Deed proposal.

Why did the creditors object?

Mark

In relation to the Car - the Accountant in Bankruptcy guidelines highlight that cars under ?ú1K do not constitute an asset under the Bankruptcy but cars above that value should be realised.

Notwithstanding they do allow, if an Income Payment Agreement is being paid, for the person to keep the car.

Most proabably you will be asked to complete the relevant Application Pack and appoint the Trustee who was acting in your Trust Deed. You have the option of appointing the AIB, if you are not happy with your Trustee.

Agree Mark's comments regarding the property and reduction in level of contribution.

Hi

Thank you for advice, still very worrying & stressful but at least I'm not totally in the dark. Have a meeting on Wednesday to discuss the situation so will write back when have more information on how we get on. We don't know the reason for the trust deed not being protected. I'm personally finding it hard as my family have strong views on debt but I know that what we are doing is a positive thing and we will get there, and will have a more happier brighter future soon.

Jayne

Hello jayne9989,

Best of luck for your meeting. Please do let us know how everything goes.

hi

Just writing back about meeting we had yesterday. Everything was ok but stressful. House is fine but have been advised to safe guard our home that we will need to pay ?ú500 each to release the flat from the agreement. Car should be fine and agreement that had already had is still fine.

Just need to pay the ?ú200 and find someone to lend as ?ú1000 for the house.

We can also give them a revised budget for her to look at but no promises that the monthly payment will be reduced.

Things now don't seem quite as bad but will be a stressful time for a while but we can now see a future for our family.

Thank you for advice

Jayne 9989

Hi jayne9989,

I'm really glad to hear that there will be a way to ensure your home and car will be protected and that things don't seem quite so bad now.

Please let us know the outcome of the situation with the monthly contribution. It is important that it is set at a realistic level.