Hi Mark.

What practical differences do you see this making where someone comes into money (or property) during a trust deed in the future?

Hi TDA

The main difference I see is that the position will not be affected by the trustee's failure to discharge a person.

There was a post recently about taking a lump sum from a pension and this was not advised as they had not yet been discharged, therefore the matter is outwith their control. The current thinking is that, irrespective of delays with PPI etc etc, there will be a finite period for acquirenda and therfore not dependant on the Trustee's action or inaction.

Mark

That sounds like good news for the public.

It's impossible to justify that someone who has properly completed their obligations should experience different outcomes if they later (for example) inherit either just before or just after their trustee gets around to discharging them.

It's certainly interesting looking through the proposed changes. The one thing that continues to pop up is that you can follow the new regs, get creditor approval and the AIB in their wisdom may decide not to protect the Trust Deed or discharge. From the start, the Trustee may:

S.11 Following the process 100% in a trust deed agreed by the creditors, the AIB may refuse protection if they are not satisfied with 'any expenditure' or 'any contribution from income'

S.24 The AIB may refuse a persons discharge, even if this is agreed by the trustee.

It may just be my cynical nature, but if the trust deed does not acquire protection, then does sequestration follow? If it does, the AIB's fees would treble in sequestration as opposed to the trust deed.

Mark

All sorts of reputational issues associated with that though Mark?

I think it might be seen as a kind of "joker card" that the AIB keeps up their sleeve ready to play in the event that a case superficially seems OK but to an educated eye there's a bit of a bad whiff about it.

There we go... more than 7,000 posts here and I've finally managed to use the word "whiff" in the forum!!

Damn... beaten to it.

Plasticdaft managed to sneak in a "whiff" to the forum in December 2011.

Have the regulations also now stated that creditors can off set monies to their written off accounts as and when they see fit as alot of us have experienced lately.

Hi scoop.

I think that's an interpretation of a general right to set-off that exists under the law rather than anything specifically related to trust deeds.