Hi Phill

The information you are receiving from Wilson Andrews and/or their advisors appears to contradict itself. There is no minimum payment in sequestration as TDA describes above.

Are you both im employment?
Was a formal valuation carried out?

Also re the £500. We are back to this £500 x 2 question yet again. I would not consider £1,000 a nominal sum.

Here are the guidance notes the Trustee should follow:

ÔÇó If there is little or no equity, can title be transferred for
a nominal sum?
The Accountant recommends that the trustee should not wait
for it to appreciate in value unless there is no co peration
from the debtor, spouse or co owner. If the debtor does not
wish a formal re conveyance the trustee should consider
issuing the letter at Form 22 of the Statutory Instruments
formally abandoning his interest.

Mark

Hi Phill

Your wife wouldn't be able to do a LILA petition because she owns property, she would need to petition on the back of a Certificate for Sequestration.

I agree with Kevin's comments that a trustee can seek a nominal payment in respect of the property, however just because she owns a property should have no bearing on whether she should be paying a contribution or not.

As for a reduction in contribution, your contribution should be based on what you can afford to pay.

Julie

Hi Phill

This time last year my husband and myself started a trust deed which did not become protected and started sequestration. At the time we were also unable to pay for fee of £500 each for the release of our property. we have not paid this and will be unable to pay this as we do not have a 3rd party who we can ask. It is not long now and our 1st year will be up and will be released from the bankrupty. Two more years and will can put the last 10yrs of living in debt behind us.

It is really worrying at the time but for us life couldn't continue the way we were. We now have a future for ourselves and more importantly our children.

As regards our home, we live in a small flat and the worse that could happen is we are forced to sell, but if this happened firstly there would have to be enough equity in the property to make the trust deed sell the property, small equity it is unlikely they would do this due to the costs. secondly if they did sell it, it could take a long time. If this happened I now don't care, we would end renting and that doesn't bother me.

Please free to ask anything you want. I understand but you will look back and will be glad you made this decision.

Hi mark
Iam in full time employment my wife is not. She is a stay at home mum who only recieves tax credit. She doesn't get anything from the government in income support no jobseekers nothing. We will struggle to get the £500 in 6 months and another £500 at the end in 3 years time. Neither us nor parents have that kind of money but at the same time don't want to loose the house. We had a proper survey carried out a month ago and it reported around £9k negative equity. In 1 years time no way will the house be in anything other than negative equity. If our mortgage goes up my ip has advised the minimum contribution is £125 that's the lowest each we have to pay, is that correct. We have to pay £131 for my wife and £132 for me, he said that's what we can afford. I just want this to be all good, I feel am banging my head against brick wall explaining myself to them.
To the other forum member, forgive me I forgot ure name, did your ip ask for £1000 also. What was your contribution each, if you don't mind me asking. This is scary stuff tbh.
Cheers
Phill

hi

Yes we were asked to pay £500 each to release the flat. Flat is 12,000 negative equity.

Our monthly joint amount is £350 can't remember individual amounts think mine is about 150. We both work.

Hi Phill

Your wife should not be making any payment under any circumstances.

Our Guidance is quite clear and quite specific and I am amazed that they are looking firstly for the 2 x £500 and secondly a contribution. I assume the figure's have been eh! 'calculated' whereby you are actually paying her contribution from your income. I wonder how your creditors would feel if they though some of your money was going to pay other debts. My advice would be to ask for the paperwork back asap.

Guidance verbatim:

3.2.5 Any sum which is derived from a Social Security Benefit cannot vest in the trustee (see Section 618A). Interim trustees must take care to clarify the most likely source of funds if there is any indication that they may be derived from Social Security benefits. If a debtor inadvertently pays money to the interim trustee for the benefit of creditors from funds which were derived from Social Security benefits, the trustee must return those funds to the debtor.
This applies even if the payment is made voluntarily and in the full knowledge of the rules on the inalienability of Social Security benefits.

Mark

I must agree with the other experts. As your wife is reliant on tax credits only she should not be having to make any contribution. Also there certainly is no minimum contribution in sequestrations - they may stipulate before you apply that they would not wish to be nominated as your trustee but once appointed they can only ask for whatever is reasonably affordable, which could turn out to be absolutely nothing if circumstances change.

Hi all thanks for the info, 1 question , will we be accepted on a sequestration then with my wife not working and only getting child tax credits. Iam starting to think that wilson andrews are or after as much money as they can get. Can anybody else help us. I don't want to deal with them now.

Hi phill.

Are you now bankrupt?

Are you in a position to withdraw yourself from this company, at least until you feel happy that everything is OK?

Its hasn't been finalized yet. Can we still do it weith my wife not working. Thanks

Hi Phill

I would check the Register of Insolvencies (which is free) on the Accountant in Bankruptcy website. If you and your wife's names are listed unfortunately Wilson Andrews have already been appointed.

Julie

Hi julie,
Does that mean there breaking some sort of law>guidance by making us pay 2x500 and making my wife pay a contribution off her child tax credits.
Would we unable to do anything about our debt with my wife not working. Am confussed, don't want to make the £500 or my wife to make a contribution if we don't have to. Were gona be worse off every month for 3 years.
Phill

Hi Phill

I would suggest that you write to Wilson Andrews quoting the guidance as detailed above by Mark. One thing I would point out however is that if you get Wilson Andrews to agree that your wife shouldn't be paying a contribution, potentially you may find that they could increase your contribution, depending on how they access your income and expenditure.

If you agreed that a third party would pay the £500 x 2 I'm not sure that you would be able to dispute this.

Julie

Hi Phill

It would be worth writing to them, if only to get their justification for advising your wife to pay a contribution!

Mark