Welcome to the trust deed forum Titchybabe.

You may well be correct, it's quite possible that this lender will receive less from sequestration (bankruptcy). It's still their decision to make however as to whether they'll allow a trust deed to become protected.

Trust deed firms know the acceptance criteria for all of the main banks and credit card providers, so these types of issues are thankfully not that common. However it may be the case that less prominent lenders such as Everyday Loans sometime take a different view.

You don't necessarily have to go bankrupt I would have thought. The debt arrangement scheme might also be worth considering depending upon your circumstances.

I would first find out the reason for the objection.

In most cases a higher contribution or a reduction in trustee fees are sufficient for the creditor to rescind their objection and allow a Trust Deed to proceed.

However to put your mind at ease, the assets of the Trust Deed are dealt with under the same way as a sequestration process therefore in your case, it is irrelevent what process you enter.

Some firms just disagree to Trust Deeds in principle, and refuse them regardless of your offer. Fortunately, these are vfew and far between. If they will not budge, then you can look at other options, such as the Debt Arrangement Scheme, but this would require you paying your debts in full. I presume this was not your preferred choice if you went into a Trust Deed in the first place.So long as you have the details on what will happen to your house in writing, you should be fine with Sequestration.

You could see if your Trustee would be willing to send a comparison to the "objector" outlining the position in both a Trust Deed and the potential Sequestration which outlines the potential level of dividend payment.

This may help in their decision making process when they see on paper that the Trust Deed is likely to give a better return to all creditors.

Chris

Yes i agree with the above comments - most credits are part of independent parties that vote on their behalf - an increase in contribution and a decrease in trustee fees are sufficient to enable creditor to rescind their objections

Hi Titchbabe

I think the creditor would have to be fairly unique as the majority of creditors (90%) are dealt with by The Insolvency Exchange and firms know exactly what the criteria is for acceptance.

Do you know who objected?

Mark

think listed as everyday loans (first thread)