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puzzled
| 09-04-2008 05:42 PM |
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Joined: 09 Apr 2008 Posts: 2 | Hi can anyone explain to me exactly what is involved in Sequestration? Basically when we moved into our current home (Privately rented) we contacted the council regarding Council Tax and were told that as we were part way through the Council tax year we had to pay £260 per month which on top of our £440 pm rent from one income was not possible. On receipt of the new Council tax bill the following year we again contacted the Council and asked if we could pay the current charge plus a little extra to take down the previous years arrears and we were told that the only way this could be done is if we gave the Council Employment and Bank details which we were unwilling to do as I had only recently started in a new job which was on a temporary contract and the agency have an unwritten policy of sacking people with wage arrestments as they don't want the admin costs of administering this. This carried on back and forth for a while with us asking for a payment arrangement without providing these details and them saying no. We have now reached the point where they are going to court for sequestration, and I am having difficulty finding out exactly what is involved in this, I have been advised that they will not take my car as it is 8 years old and is still on HP (which will be paid off in July). and they will not take anything from our home because we do not own anything valued over £1000. So this seems like an ideal way out of this mess, however I have also heard that the sequestration trustee will take my wages and "allow" £20 per week each for my fiance and I for food and groceries which is impossible and I'd be better off leaving work and claiming benefits. So if anyone can clarify all this it would be greatly appreciated. |
| paladin | 09-04-2008 11:08 PM |
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Joined: 06 Jun 2007 Posts: 55 My Profile | Hi Puzzled You will not be asked to survive on £20 per week. The rules for sequestration have changed recently: it will only take a year until you are discharge from your bankruptcy. What a trustee will do is take control of your assets and sell off anything that will achieve a return for the creditor. They can't sell essential household items like TV's or furniture but if you own an expensive plasma screen TV the equity may be realised. The trustee will look at your income and assess whether the amount of money you need to live on is reasonable. Any surplus will be expected to be contributed to either the costs or as a dividend to the creditor. This is called an Income Payment Agreement and this will last three years. Have you tried to come to some sort of agreement with the council or have things gone too far? Try not to worry about it too much. As i said you won't be left destitute so put away your "How to live on £20 a week" cookery book. I'll post a link to for more information about the sequestration process tomorrow. Get back to me if you have any questions. P |
| DW George | 10-04-2008 10:01 AM |
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Joined: 01 May 2007 Posts: 148 My Profile | Hi Puzzled welcome to the DW forum. I am sorry to read about your circumstances. The most important thing for you to do is get a full understanding about the sequestration process. This will alleviate any fears or worries and stop you listening to foolish people telling you you'll only have £20 a week to live on. I have written an article on Bankruptcy which will help answer any questions you have about what happens and perhaps it will debunk any myths as well. George |
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puzzled
| 10-04-2008 02:31 PM |
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Joined: 09 Apr 2008 Posts: 2 | Hi guys, Thanks for your quick response and helpful advice. I would obviously prefer to sort this out with the Council directly but they are unwilling to enter into any arrangement (other than full settlement) without me providing them with my employers details which I can't do as I have stated already my employers simply pay off anyone with a wages arrestment. So given that I don't own my house and I don't own any property that could be valued at £1000. We have an 8yr old car that is on HP until July, I earn an average of £1300 to £1400 per month (net - paid weekly) depending on hours worked, my Fiance is currently off work with a long term illness and is waiting to hear about an application for incapacity benefit and we currently pay out £440 pm rent, £270 pm for the car, £60 pm utilities, £90 per month for TV/Telephone/Internet (which will be getting reduced in May when we are out of the 12 month contract), £12 pm House Insurance, £22 pm car insurance, and £19 pm AA membership. How do you guys reckon the sequestration will affect us? |
| DW George | 14-04-2008 02:35 PM |
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Joined: 01 May 2007 Posts: 148 My Profile | Hi puzzled, Sorry for taking so long to get back to you. It is difficult to say how sequestration will affect, the amount of debt you have. In any case the IP will advise you about how much he'll allow you for TV etc and food and essentials. George |
