Do u not think the proposed changes will cause people to choose bankruptcy more over a trust deed.

Why do you think that would be the case sparky1?

Its worthwhile noting that althought trust deeds will become a minimum of four years from November, because that change can be implemented by regulations, the increasing of the duration of sequestration will not take effect to at least 2015.

So for about 18 months, trust deeds will be 4 years, 4 year payments, 4 year discharge with a 4 year acquirenda rule. Whereas bankruptcy will be 1 year with automatic discharge and a 3 year payment period and acquirenda will only be for 1 year.

It will be interesting to see whether, for some people at least, this helps to overcome a common reluctance to become bankrupt.

It will also be interesting to note the impact of this change on the interests of creditors.

Hi TDA. As Robinhood has already noted above if I was given the option of a 4 year trust deed 4 year discharge compared to bankruptcy - I'd go with the later one.

I understand that IP's have to charge for their service, but some fee's are totally astronomical - there is money to made from debt.

Of course, for those thinking about entering into a trust deed at the moment the proposed changes mean that the clock is ticking.

I would certainly not advocate anybody rushing into a trust deed, but waiting until after the law changes later this year will probably mean paying for 4 years instead of 3. So for anyone considering the trust deed route it might be worth seeking advice and making that decision sooner rather than later.