Hi Cb1998, i'd suggest having a chat with Kevin or Annmarie before ruling out any options. They can advise on why the proposal put forward by your money adviser would have failed, and what could be tweaked to get a more positive result

Hi CB1998,

There really isn't much need to panic at all. A debtor led sequestration should involve a similar process to a Trust Deed at the outset, whereby you speak with the proposed Trustee (or a member of their staff), conduct a full review of your financial and asset position, and be provided with detailed advice about what each option would mean for you. Ultimately, it is our job as money advisors to put you in a position to make an informed decision, prior to signing any paperwork.

In short, items such as televisions and mobile phones are not assets that would vest (unless you have some extremely rare and valuable TVs/phones). For some peace of mind, any assets that would vest in a Sequestration, would have vested in your Trust Deed and should have been included in your statement of affairs (even if they weren't going to be realised).

Reach out to a reputable firm who provide Sequestration, as well as Trust Deeds, and have a discussion with them about your circumstances. They should be able to provide good advice that will allow you to make an informed decision about the best path forward for yourself.

Out of interest, did your Trustee tell you why the majority creditor objected (or who they were)?

Try not to panic, Cb1998.  Sequestration would not necessarily be any worse for you than a Trust Deed - the monthly payments are worked out using the same method and the vast majority of normal household goods such as furniture, tvs, appliances etc are completely safe.

I'm also interested to know why your creditor objected to your Trust Deed.  This is fairly unusual in my experience.  Did your trustee give you any information about this?

If you want to discuss your options directly with one of the experts here such as myself then please feel free to click through on the contact button.

@kevin-mapstone I was told it was rejected due to my travel expenditure and monthly barber/ hairdresser costs. Travel expenditure was £200 for my monthly train season ticket which unfortunately there is a mandate in place these days for office attendance so not much I can do and the barber costs were £30 per month. Been told that they have notified the trustee that they are not willing to renegotiate either so have a hard No in regards to the trust deed

That is surprising - are you able to tell us which creditor it was that took this stance?

If they definitely won't budge and the creditor is owed more than a third of your total debt then sequestration is likely the logical next step.  Depending on which insolvency firm you signed your Trust Deed with, they may be able to help you with a sequestration application too.  If not then we would be happy to help, or you could approach your local free money advice agency for assistance with it.

@kevin-mapstone it was capital credit Union, however they contacted me directly to say it was due to the fees being deducted by the trustee.

Ah, that makes sense then.  Most of the credit unions reject Trust Deed proposals as a matter of course.  I don't really understand why, as the usual outcome is the person going bankrupt instead and the costs might well end up even higher, but they aren't usually open to considering such arguments.  Your chosen trustee should really have known this and advised you of the likelihood of failure prior to you going ahead, to be honest.

@cb1998 To echo Kevin's sentiments, I'm very surprised that the Trustee proposed a Trust Deed with a credit union as a sufficient creditor - did their balance turn out to be higher than expected? Credit Unions generally reject Trust Deeds, no matter the circumstances, so I would pay little heed to the arguments on travel costs or hairdressing expenses. Get in contact with a local Insolvency Practitioner who deals in sequestration and get some proper advice.

@kevin-mapstone @nm89 thanks for clarifying and no the balance was as I reported to the trustee so seems they just didn’t inform me.