Statutory debt solutions

•Minimal Asset Process bankruptcy, Full Administration Bankruptcy and creditor sequestration – as all debts must be included in a bankruptcy/sequestration, a bank arrestment will be struck down when they are awarded.

•Protected trust deed – when a client’s trust deed becomes protected and, as along as the debt is included, the bank arrestment is struck down. Advisers should be mindful that where the arrested amount is significant it may vest with the trustee.

•Debt Arrangement Scheme (DAS) – although it cannot stop an arrestment which has already been served on the bank, it can stop the furthcoming from happening, providing this is done within the 14 weeks of the bank arrestment having been served – ie, no monies will be released to the creditor. When the DAS is completed, any monies captured in the arrestment will be returned to the client. Advisers should be aware that with the nature of DAS this may take a considerable number of years.