Hi Neverendingstory.

Sequestration was an automatic one year discharge then.

However, where deemed affordable, people would have been required to make contributions for a further two years (three years in total).

Hi TDA

Thanks for that.

So if the people that were sequestrated were discharged after 12 months, and then bought a house this year (with cash) there is no come back on them?

NES

Hi NES

Yes that is correct as any potential claim would cease on the discharge, though that the new regs extends the period for the full 48 months for sequestration cases after 1st April 2015.

I wonder how many people have managed to work their way through the new 84 page sequestration petition form. I'm not surprised the AIB want these completed online as postmen will be dropping like flies carrying them!

Mark

84 pages!!! Jeez oh! Don't fancy trying to complete that form!

Thanks guys - seems as having the money offshore worked well for this couple!

Hi neverendingstory,

It's a big form but it's relatively straight forward, just time consuming.

A Trustee will make all reasonable attempts to trace and locate assets but sometimes it's difficult for a Trustee and they also need to balance these investigations against the prospect of recovery and funds to cover the investigation costs. Investigation costs can run into tens of thousands of pounds. I guess an asset that is extremely well hidden will be difficult to trace and recover. Funds held offshore would probably fall into this category.

I had a case whereby the individual had a boat worth a large sum of money. There was a secured creditor involved by way finance on the boat. We tried to investigate the whereabouts of this boat to recover it and sell but the individual advised us that the boat sank.

The secured creditor didn't believe this and requested us to conduct a private examination under oath before a sheriff. The difficulty for us was the fact that this would be a time consuming procedure and a costly one with very little prospect of a recover of the asset/funds to enable us to cover our costs. The secured creditor agreed to cover our costs and I conducted the private examination and we were advised the boat was actually sold with no record or details of this.

Eventually we had to close our investigations as we could not establish the whereabouts of the boat. Whether it sank, it was sold or the individual still has this in the south of France I don't know

Hi Neverendingstory.

If assets were hidden at the time of sequestration we might be talking about something else...

Hi NES

The problem all trustees will have is having sufficient information to pursue these. In my experience the cost of pursuing these usually outweighs the benefit, although there is always an obligation to investigate.

The other issue is the problem with jurisdiction as the trustee would require to approach the court if monies/assets were not in Scotland. An example we had was a property in Waterford in Ireland & we required the co operation of the Irish courts in the matter. We got both a result & a trip to Ireland, although that was many moons ago.

Mark

On the subject of the new forms, you'll require either several pens if doing it manually or unlimited broadband if doing it online!

Mark

I wish I'd taken out the low income low asset bankruptcy when I was eligible back in the day but was insistent one day I would be able to try pay off my debts oh I wish I wasn't so bloomin honest #128548;

Hi MichelleG,

Hindsight is a wonderful and I'm sure many of us in life have looked back and thought why did I do that or make that decision.

In my experience a lot of people prefer to try a Trust Deed rather than consider Bankruptcy even although Bankruptcy is relatively straight forward depending on your circumstances. If you were suitable for a LILA then you Bankruptcy would probably have been straight forward. Also, a lot of people are of the same opinion as you that they want to pay off their debts.

Before the change in legislation which increased the payment period from 3 to 4 years in a Bankruptcy, when I was providing advice to people on their options, a Trust Deed was 4 years, a Bankruptcy was 3 years and a DAS a lot longer, a lot of people just preferred a Trust Deed and to pay for 1 year longer than a Bankruptcy as it felt the right thing to do. Their circumstances were straight forward, no assets, rented accommodation, employment unaffected but it was their personal choice.

Try not to beat yourself up too much about it.

Ah well - it was just annoying me as having gone down the TD route and counting every penny for three years, this couple still managed to get out to their time share every year, in fact had a couple of holidays each year!

They are in their late 60's and have said they have managed to get a mortgage to buy said house (which I don't believe).

Anyway nothing I can do just fancied having a rant and am now chuckling at David trying to find a boat!

Thanks guys.

NES

I chuckled at that too. David had mentioned offshore assets, but it was only on reading further that I realised he literally meant offshore!