Hi tinsoldier

Problem is that sequestration is 4 years also.

Mark

The comparable IVA is five years in England, Wales and Northern Ireland.

It's six years for homeowners that cannot release equity (within certain parameters).

Sequestration 4 years? Is that a proposal?

Hi tinsoldier

Yes, part of the proposed changes to sequestration.

Mark

Still one year until discharge, though discharge will no longer be automatic.

Contributions, if affordable, will be for four years.

It impacts on people's ability to get a mortgage, credit etc with the extra year, which is a real pity.

It's a very tough balance to find between the interests of debtors and the interests of creditors tinsoldier.

In this instance I guess those interests are directly opposed to each other in many respects.

That's fair enough TDA and I take your point, but I always thought the Scottish trust deed was a fairer and obviously quicker route than the English IVA counterpart. It looks as thought we are edging closer to that.

I question whether creditors will benefit much from a 4-year term. An extra year's worth of contribution payments won't add up to a great deal of money in the vast majority of cases. Whatever extra funds are brought into the pot will then be reduced by the extra fees associated with administering a sequestration for another year.

I think this has more to do with trying to make sequestration less attractive to those in debt, in an effort to encourage more people to use DAS instead and increase returns to creditors indirectly that way.

Assuming that a decent percentage of those that start DAS actually complete it Kevin.

Which, from the data we've seen and written about before, appears to be quite doubtful.

I think you are correct TDA.

In the last month or so I've been contacted by people in a DAS scheme where this was evidently not the best solution and also in most cases, they were unaware of the other options. Fine if there is a property and DAS excludes this, however how many DAS cases have had a valuation to discover the extent of any equity. In the ones I have checked, the equity ranged from negligible to massive negative equity.

Mark

Does this apply to trust deeds people are already in? For example, I am just over a year in and I'm couting down the nxt 2 years until I'm out. Are we now saying after 3 years I won't be discharged???

Hi Chillypink

No this will only relate to Trust Deeds signed after the changes come into effect.

Mark

Thanks Mark