Hi SandyF

It's difficult to comment without a complete financial picture. That said, if there are no differences whatsoever, then the shorter time period would seem to be the logical approach for an individual.

Mark

Hi SandyF.

It's an interesting question. With little to lose from sequestration there seems to be little point in entering a protected trust deed term lasting longer than three years?

I'm sure other forum members with personal experience of trust deeds or sequestration will be happy to share their views with you...

Hi SandyF

If you hsve no assets, then the Trust Deed has been extended to cover fees and provide creditors with a specific dividend. As Mark says, without all the information it is hard to tell, but all other things being equal, why would you make it longer than it has to be?

I have no assets and will be paying back £200 a month for 4 years on a Trust Deed or three years on a VS. To give her her due the IP did say they could trim their fee to make it three years on the TD.If that is the case I would probably go for the TD over 3 years

hi SandyF

You may also wish to consider that under the Sequestration option unless your discharge was deffered (which is most unlikely if you cooperate) then although the Income Payment Agreement would last for 3 years you would receive an automatic discharge after 1 year. Whereas the Trust Deed would last the duration of the term of the Trust Deed.

Hmm more to think about. I'd imagine that if I chose VS then my bank Santander, who I just moved to in December, on advice of CAB, as HBOS are my biggest creditor, would want to close my account?

Hi SandyF.

It really depends on what type of account you have. Most banks will not permanently close a basic account that has no credit facilities if you enter a trust deed or sequestration.

I'm not sure of the position with Santander. We've never really pointed people towards them because they do so badly on customer satisfaction surveys.

Check with the bank directly if you want to be sure.

I have an account with a debit card, salary goes in, standing orders for rent, car insurance etc go out. No overdraft or any other credit facility.

Getting a bank account for sequestration or during a PTD is not as hard as it used to be.

If I were in your shoes and a company had just said they could trim their fees I would be looking elsewhere for advice and a 2nd opinion.

With the info in hand I would be looking at sequestration.

Paul

Hi SandyF

Paul makes a good point.

Extended Trust Deeds tend to be fee related and are extended to meet the IP's standard fee.

Given the choice, I think trust Deed is certainly preferable, however I think any decent IP would trim the figures to fit into 36 months.

Mark

The company I have chosen are one the better ranked ones and I didn't ask to have the fees reduced to fit the 3 year TD. I was given a list of recommended firms by CAB,firms that they have had feedback on from clients going to them with debt issues. As always I appreciate your advice.

If you got an early discharge from bankruptcy and then received a payrise or won the lottery does it get paid over? Clearly it would in a trust deed. Just trying to work out what advantage the trust deed has over sequestration,both shatter credit ratings.

Are fees similar for both?

Paul

CAB are very good with their advice,thats where we went to start with as well.

Paul

First thing that CAB said to me as I walked in was.
There is Life after Debt and there is Life during Debt. Calmed me down right away. Expert advice put to me and very helpful people. I think it is what is called Aquiescence, pardon my Latin been a long time since High School. Whatever you aquire during the three year payback period you have to tell the Trustee and they would adjust the monthly payment . Applies to both VS and TD I think