The debt was prior to sequistration, the decree was 6 months after..... just to clear that up

Firstly to Rockbottomsolidbase, a sequestration cuts down all wage arrestments regardless of whether within 60 days or not.

To pingpong - a decree is just a judgement to say that a debt is owed at that time. Upon discharge from the sequestration then your wife's debt to that creditor is also discharged as the obligation predated the date of sequestration - it doesn't matter that the decree was awarded afterwards.
When you say the decree will remain unsettled forever, are you referring to her credit file? If so then she can insist that this information is amended. The creditor in question has to amend the file to say that the sum is no longer owed once it has been dischargewd via a sequestration.

Hi pingpong

Sorry but that information/advice is garbage. 60 days grants a preference in dividends only. If the debt existed as at the date of sequestration (Award if done yourself or 1st calling date if by a creditor) then it is a claim. If you have a pre sequestration debt, then this cannot exist after sequestration whether it is 6, 60 or 600 days.

Very generally, all pre sequestration debts, other than secured debts are cut down by the sequestration. If this was not the case, then sequestration would be pretty pointless.

I have limited internet at the moment, but will try and respond when I can.

Mark

Mark, Kevin

Thanks for the replies she is due to be discharged in Nov so this is excellent info fom you. I dont think the RT people really understood the process up here the creditor is not likley to assist having the record removed they where advised of the situation at th tie and still went ahead with the court (or at least the trustee told us they where informed). the court was no kuch help at all. We will get to wrti the letters to them once discharged. Thanks for the advice really appreciated

Kevin, what does 'cut down' mean in practical terms if wages arrestment has already been advised to employer and possibly effected prior to award?

It means that the employer must stop deducting the funds from the wages as soon as sequestration is awarded. The trustee should confirm this to the employer in question if they are in any doubt.

I'm quite surprised to hear that a creditor can't put a wages arrestment in place after the date the TD has been signed, but before the date it becomes protected.

At that stage, the TD is still voluntary for creditors. If they object to the TD, they still have the right to petition for sequestration. Yet, they can't go for a wages arrestment...

Is there a rationale behind this, or is it just a blip in the legislation?

Thanks Kevin

and finally on this one-can funds deducted before the awardof sequestration be repaid? It's not a small amount but still listed as being able to be taken from one pay, a very small 2nd amount to be taken the following month.

Hi RBSB

Yes, if they are deducted in the 60 day period before the date of sequestration.

Mark