Welcome to the forum Neilfisk.

I'm not really sure what OR refers to. Could you confirm?

If your other half is in a trust deed it would be normal for discharge to follow only after all of her commitments, including equity, have been completed.

Hi,

Thanks for the quick post. OR is official receiver, my trustee.

So, even though she has made all her payments to cover the TD, she still can't be discharged until she has paid the equity part?

Thanks

Thanks Neilfisk.

That's right. Payments to the trust deed include both payments from income and any money due for assets. Discharge can only happen after all such payments are made.

Thanks for that. Bit disappointed at that TBH, I was discharged sequestrated in June 2009 and have no problems getting discharged as I am still paying my equity part.

quote:

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Originally posted by Neilfisk

Thanks for that. Bit disappointed at that TBH, I was discharged sequestrated in June 2009 and have no problems getting discharged as I am still paying my equity part.

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That's one of the differences between sequestration and a trust deed.

In sequestration you will automatically be discharged after one year (unless your trustee takes legal steps to have the discharge delayed).

In a trust deed, you will be discharged by your trustee once you have met your obligations under the trust deed. In your wife's case, it looks as if it will take at least five years to get to that point.

In both trust deeds and sequestrations, the trustee will usually be in office for some time after you get your personal discharge. The trust deed/sequstration is still 'live' until the point when the trustee is discharged.

Yes, the difference is that in a sequestration your discharge does not automatically mean that your property passes back to you at the same time, whereas this is usually the case in a trust deed.

Interested in your last comment Kevin, when does property transfer back after sequestration or what criteria are applied?

The person's "family home" reverts back to them automatically after 3 years (ie 2 yrs after discharge) unless the trustee takes steps to extend this period. Other assets/properties stay vested in the trustee for as long as it takes until they are realised for the benefit of creditors - unless they instead abandon any interest in them and seek their own discharge.

So, properties/assets (non-residential) with agreed zero
Or Negative equity at the beginning generally take the 3 yr period of payments to drop off the Trustees interest?
Where there is thought to be nothing to gain from a sale, is it only if a sale actually happens and actually releases funds that a trustee would take an interest on behalf of creditors?

Legally the Trustee's interest in pre sequestration/trust deed assets will vest in the Trustee until the trustee is discharged.

Mark

That's right RBSB, though in practice a trustee may be willing to formally abandon any interest in a property before the 3-year period is up.

Isn't it the same in both pTD and sequestration where -ve values are established at the outset, the trustee can abandon interest in them at that point?

Of course a sale before the trustee is discharged resulting in free funds would be an exception?