Hi Mark,

Thanks for sharing that.

It's certainly interesting to see that even where there are assets that need to be dealt with, extra income received, or hiccups along the way, cases can still progress smoothly.

The "stitch in time saves nine" rule (at the start) seems to apply for all involved.

HI TDA

I think it's the way it should be where possible and looking at the guidance etc, it should actually follow this course.

I don't think you can plan for every eventuality, but if all the major issues are covered and agreed at the start then there should be no nasty surprises later and believe it or not, most IP firms would prefer this.

Mark

Mark that is very reassuring for people. Itis so easy to forget that most trust deeds run well, simply because people often contact the forum when things go wrong. If things are in writing, it does make things so much simpler for everyone. Your statistics are great Mark, if it was an Olympics challenge, i am sure you would be up for gold[:)]

Hi Shona

Yes, but I only mentioned the good ones!!! Ha!!

Mark

Mark,

I think that was really helpful to summarise the process. Are you, or other experts able to outline a similar 'process' when it applies to sequestration please?

Hi RBSB.

Are you asking this question on the basis of you approaching a trustee directly to assist you, or upon the basis of making a direct application to the AIB yourself?

Hi TDA,
I am applying for sequestration via one of the companies who contribute here. I know there are slight differences between the TD process / implications and those applying to sequestration. Just asking for clarity and hopefully the benefit of others who can't access TD.

Obviously it will be best to get written confirmation from the firm you're working with.

Hopefully our experts can share some information about the processes they operate for sequestrations here though...

The main difference, in my opinion, is that in the Trust Deed you are making a proposal and hoping creditors accept. In sequestration, creditors are basically told what they will get.

The process itself is fairly similar and runs kind of like;

Complete Petition and forward to AIB with £200 cheque

Petition will nominate a Trustee or AIB will be appointed. If it is AIB, they may appoint an agent to complete the administration.

Once sequestration is awarded, you will get a letter to arrange meeting to complete further paperwork and at that meeting the contribution will be agreed and assets discussed.

The Trustee will decide if its worthwhile holding a creditors meeting, although this is fairly rare and notify creditors of the sequestration.

The Trustee then administers the sequestreation for 3 years although you are discharged in 12 months. Despite the common thought, the contribution lasts for 3 years.

After 3 years, the Trustee seeks his discharge.

The above is a very rough summary of events, but hopefully this helps a wee bit.

Mark

thanks for that,TDA and Mark - a few further questions;
1.reviews and contributions carry on for the full 36 month period? 2.Obligations re. windfall, inheritence etc last 36 months?
3.Personal discharge doesn't entitle applicant to request alterations
to credit file, this is only after 36 months and trustee discharge?
4.Equity obligation may be paid at any point during 36 months by
someone else or as an extension by the applicant?
5.Discharge will not be applied for by the trustee until all agreed
payments are received, including agreed equity?

What are the effects on the individual of the 36 months being extended for equity or missed payments, ie what consequences of bankruptcy will continue, making it worthwhile to get help to complete payment obligations inside the 36 months?

Hi RBSB

In answer to your points:

1. Yes
2. In the normal course this would be restricted to 12 months as this is when you would normally be discharged.
3. No
4. This would need to be agreed with the Trustee, but generally yes.
No, discharge is automatic after 12 months, however equity and rights to payment etc exist for the 36 months.

The Trustee would need to have pretty good grounds to extend the sequestration, I don't see missed payments through unemployment etc being valid grounds. The equity will vest beyond the 3 year period until dealt with ( assuming the Trustee renews the inhibition)

Mark

Thanks Mark!

re 3. Sorryt, on re-reading, I realise I was unclear in forming the question.
Your No answer - Was that
a.agreeing with my statement that personal discharge doesn't allow clear up to start or
b. correcting, in that the entire statement is wrong?

In essence is personal discharge or trustee discharge the trigger for clearing records?

Hi RBSB.

That's really a credit rating question, and we're not experts on that.

However, if your debts have been discharged I'd say your credit file should reflect that.

HI Tda, I know you can't give those answers relating to credit rating, I'm looking for an indication re similarities/differences between pTD and sequestration in terms of what should be expected in terms of recording of info eg
'Default notice dates should be corrected to on/around the time the trust deed began (if they have been reported later).' was a reply you gave another poster re pTD and I wondered if this also applies to Sequestration,ie recorded defaults should be dated in line with the start of the process, the personal discharge or the end of the trustee's appointment, trustee's discharge.?