will this affect those of us currently in TD? please say no!!

Hi cal

No, any changes will only relate to cases signed after the law comes into effect.

Mark

With minimum dividends I predict many a 5 year plus trust deed!!

Glad I took action when I did!!

Paul

Yes, trust deeds may last a long time if things go their way! You have to ask why they are changing trust deeds, when they are based on criteria set by the creditors. If the creditors are not complaining, why change trust deeds? Could it be because the accountant in bankruptcy gets more money from sequestrations ...... I wonder!

For once in my life I seem to have done the right thing at the right time !!

How likely are these proposals to go through ?? And when would the changes come into being ??

I'm just curious as it took us so long to think about TD, research it, then think about it some more !! Its a really difficult decision to make & would hate to think it's going to be made even harder for folk who are genuinely struggling.

They are very likely to come into force, although people will be lobbying against them i am sure. Any changes are planned for 2013/2014. Good that you feel you made the right choice, at the right time though.[:)]

Looking at the proposed changes, the new Trust Deed will be more akin to IVA's I suspect. The longer period will enable to increased dividend to creditors no doubt.

It will be interesting to see if TIX who act on behalf of 90% of creditors have had any say in the proposals. They would effectively change the landscape without any change in legislation.

Mark

It's probably going to be a good thing if the AIB is going to take a greater role in how firms operate by more direction and supervision. Is bankruptcy going to be the more preferred option for clients in the future or will this see more use of DAS? 30-50p dividend seems huge and given that the fees won't decrease, that'll surely have a huge impact on whether or not people will seek help when they need it. Based on my debts, I'd have had to have a monthly payment of almost £500 per month and that's before any fees are added. So glad I'm just playing the discharge waiting game.

I think that a general theme is to encourage use of DAS gillian.

In reality most advisers just think it's going to push up the bankruptcy figures.

Why enter a 7 year trust deed if your payments towards debt could end after four years in bankruptcy?

The irony is that "poorer" people will have fewer choices as a result of this. And creditors might get less back.

It does look like trust deed fees will be suppressed. Probably a good thing in terms of some of the totally excessive fees we read about here sometimes. Not such a good idea if trust deed firms feel that they cannot charge a sufficient fee to take on a lower contribution trust deed. Once again choice may be limited for the individual and bankruptcy become the default option.

You'd almost think that the (unstated) aim is to increase the bankruptcy figures. I wonder why that might be?!

Shona could be on the right track, follow the money.

I personally think the fees range shown here by contributing companies are not high considering the amount of work involved but it seems the AIB's role is more of a rubber stamping?
They seem to be very understaffed and disorganised as well and are taking ages to process applications, maybe higher fees will improve that.?

For Trust Deed and Sequestrations, the restriction of fees to a reasonable level will at least ensure creditors recoup more of their losses.

Hi.

We saw a worked example that shows how what would currently be a three year trust deed could easily last five to seven years in the future.

Better the devil we know in many ways?

Perhaps RBSB.

There is some really good stuff that looks like it will come into effect. The move towards pushing people into bankruptcy is perplexing though.

What I would say... anyone that is thinking that they will need to start a trust deed or become bankrupt at some point might want to be conscious that things could change in the future in way they would prefer to avoid.

It isn't imminent yet, but delaying things for too long might eventually result in a much longer repayment term than the current standard three years.

It's an interesting point on the feeing side. In Trust Deeds the AIB advised that they were changing the set £250 supervision fee to £100 per year for every year the Trust Deed was 'live'. Several months later, the plan to extend the period to 4 years!

The AIB also charge 17.5% of a trustees fees which will now cover a 4 year period.

It is hard not to be cynical.

Mark