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Topic starter
04/10/2010 8:26 pm
As I have no assets (or won't have soon - house being signed over to my husband with divorce proceedings), and it won't have any problems with my employment, is there any difference between me being sequestrated vs TD.
The only one I can see is that if I go down the sequestration route then I know it will finish in exactly 3 years whereas on reading this forum it appears that some TDs end up going on longer.
Any advice gratefully received.
Thanks
04/10/2010 9:10 pm
Hi Valley
in answer to the points raised, your interest in the property would come under the control of the Trustee if the Trust Deed was signed before the divorce transfer. Even if this was transferred to your husband, it could be challenged.
The contribution is based on a % of surplus and should leave some room for other matters.
Trust Deed or sequestration. Your choice. The main difference would be the credit file issue and also your ability to proceed with sequestration as you possibly earn above the limit and own property. With this in mind the only way forward would be to wait until one of your creditors has commenced legal action and you have a charge for payment etc.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
04/10/2010 9:25 pm
Hello again valley.
Just to add to Mark's comments please remember that most trust deed companies close trust deeds promptly and efficiently.
A lot of the feedback (though I accept not all) on the forum recently about slow trust deed closure has actually related to a single company who are currently behind on this.
They have informed us that they are working very hard to catch up and have a plan in place to achieve this.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
05/10/2010 12:23 pm
Hi valley,
Another couple of points to note:
1) The law is changing in respect of applications for sequestration. From 15th November 2010 you would no longer need to wait for a creditor to take legal action and serve you with a charge for payment. All you need is for an insolvency professional or money adviser to sign a "certificate of sequestration" agreeing that you are insolvent.
2) Yo uare discharged from your debts after 1 year in a sequestration, though if you can afford a monthly contribution this still carries on for the full 3 years.
Most people who can afford to make a reasonable offer to creditors prefer the trust deed route as there is less of a stigma attached and there is arguably less impact on your credit rating. In a sequestration you would still have to pay a similar contribution each month for three years so there is no real benefit in opting for sequestration over a trust deed for those with enough disposable income.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
05/10/2010 5:27 pm
Thank you all for your very useful input,
Kind Regards
