Thanks for adding that Mark.

Glad I took action when I did.

Paul

Hi Paul.

Can I ask why?

Hi TDA

I suspect Paul thinks, like a lot of people, that the consultation was put out, but made no difference to a pre determined set of new rules on Trust Deeds. I know from experience that the Minister involved Fergus Ewing does not like them and made a strange opening statement at the insolvency conference in November that he would 'sort out' the companies flooding the tv and radio through advertising.

My concern is that some firms who regularly propose 5 year trust deeds to individuals will extend these even further or push for sequestration as it may be more financially beneficial and best advice will be a thing of the past.

Mark

I can just see trust deeds being extended to mirror iva's. I currently know of people in month 84 of an iva!!

Paul

Is any of this likely to impact on those of us currently in a TD?

No changes will not affect current td's.

Paul

pheww thats a relief Paul !!

Very big changes, I have to say addressing a trustee and the whole social security benefits is good to see. I know every case is different and never straight forward but i know for sure i wouldn't like to see anyone be in the shoes i have been in since the start of the year, my health has severly been affected because of stress. My only saddening point to this being raised is more people on benefits with high sums of debts will probably be pushed into sequestration feeling it there only option which unfortunetly may raise the sequestration rate. If only there was a safer way to deal with debts whilst there full income is benefit based without sequestration. I know there das plans and then there debt management plans but even that does not guarantee creditors wont take action against them. so people like myself wont have a lot of options. Unless someone creates a system thats truly based on benefit income alone with a safety net.

I don't see anything particularly sinister in the proposals coming out of this consultation. They seem to be mainly aimed at standardising the process and hopefully making it all a bit more transparent.

Many of the changes, such as equity freeze, no contributions from benefits and annual form 4 to creditors are really just formalising what most reasonable insolvency practitioners already do.

All in all not an earthshaker. The bankruptcy consultation just closed may have a more profound effect however.

We'd agree with that Kevin.

The Bankruptcy Law Reform Consultation seems much more likely to lead to fundamental changes that will affect people that need to deal with their debts in the future.

For example, there is a suggestion in this other consultation that anyone who could clear their debts in eight years or less using the Debt Arrangement Scheme will quite simply not be able to enter into a trust deed or sequestration.

Example: Your debts are £19000 and you cannot afford the repayments. You can afford £200 per month towards the debts. Your only options will be to:
1 - Enter a seven year and eleven month long DAS.
2 - Enter a DMP with no legal protection or interest guarantees.
3 - Do nothing and watch your debts increase.

Hmmmm... that's made me think. If this happened I wonder if some people would choose to get into further debt in such circumstances (so they could later access personal insolvency) rather than commit to an eight year repayment arrangement during which they'll be handing over most/all of their disposable income? The law of unintended consequences might apply perhaps?

when is the changes to the bankruptcy law being introduced TDA? will it be this year.
I always thought that you could not enter into a das if you came out of say a failed trust deed as it is the same concept a trustee is involved? or have i got that confused??

Hi Lou.

Any changes from the Bankruptcy Law Reform Consultation are quite a long way away.

It shouldn't have any effect on your situation if all goes ahead as expected.

quote:

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Originally posted by Kevin Mapstone

I don't see anything particularly sinister in the proposals coming out of this consultation. They seem to be mainly aimed at standardising the process and hopefully making it all a bit more transparent.

Many of the changes, such as equity freeze, no contributions from benefits and annual form 4 to creditors are really just formalising what most reasonable insolvency practitioners already do.

All in all not an earthshaker. The bankruptcy consultation just closed may have a more profound effect however.

---

Pity all IP's are not as reasonable as the few we see on here!

Paul