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Topic starter
29/09/2011 4:16 pm
Hi Folks,
Can one of the experts possibly help.
I have been getting progressively more anxious over the last few months as I dont want my Trust Deed to stumble over the last hurdle so to speak.
I have completed 33 of my agreed monthly payments however am going to be forced to reduce payments for the remaining payments by approx 25%. The reason for the reduction is I am loosing my car allowance from work. I've had no choice in this as my dads car I have used since February is scrap! I need a car so have re-joined the car scheme at work meaning loss of allowance and increase in tax.
My problem is at the onset of my TD my car allowance was not treated seperately from my income and was put into the same pot if that makes sense. As most folk in a TD know cars tend to be a wee bit neglected and my Income and expentitures have reflected mainly money spent on my wifes car which she requires for work.
An Enlish colleague of mine who had a friend in an IVA said allowances meant for vehicles used for work purposes are seperated when looking at income, too late for me but is that in the guidance for Trust Deeds?
What would be the upshot if payments were not lowered and I was asked and unable to maintain as before?
Thanks
Ralph
29/09/2011 4:25 pm
Hi Ralph.
To my knowledge car allowances aren't treated any differently between IVA's and trust deeds.
The allowance counts as part of total income, then any car expenses form part of the total expenditure.
Is your trust deed due to run for 36 months?
I really don't think it will fall at the last hurdle; you may just require a short extension to enable a reduction in your monthly payment for example.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
29/09/2011 5:03 pm
Thanks TDA,
I have 4 payments left including 2 missed early on due to large domestic bills. I also have an amount of equity to deal with which would take about 5 payments on old amount so 6-7 on what I reckon new amount would be. Would an extension of approx 8 months be within a normal acceptible time frame. I'm not wasting time looking into new mortgage!!
29/09/2011 5:12 pm
Hello Ralph.
I doubt very much that there will be a problem with an eight month period, though of course you'll need to speak to your trust deed firm to confirm everything.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
29/09/2011 11:41 pm
this is something that worries me about my td as i also get a car allowance and i'm not convinced that my car will last the 40 months that i have remaining. Car is already at 110k miles with zn av of 20k per year min. If my car packed it in then i would also have the loss of allowance + company car tax to deal with. Total loss would be about 6k. Would that cause the td to fail?
SkintAlly
Topic starter
30/09/2011 8:24 am
Hi SkintAlly,
Too late for me do anything now but if I had 40 months to go I would make very sure I spent as much on my car as I could to keep it on the road and reflect this on my expenditure.
If your like me and your driving 20k plus miles a year its easily costing 250/month if your servicing , insuring for business, new tyers etc!!
30/09/2011 9:12 am
Hi SkintAlly.
You may wish to raise this with your trust deed firm as a general question now.
They do understand that people need cars for their work (which of course enables the trust deed payment in the first instance) and they do not want to see trust deeds fail.
Hopefully there will be a way forward, when the time comes, that is fair to you and your creditors. I'm sure that it will be a situation that they have managed to find a solution for in the past.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
30/09/2011 11:30 am
I am also concerned re this issue. I need a car currently to manage my let properties. My husband began cycling to work when a move closer to home coincided with his car needing expensive repairs which were looking likely to cost more than the cars value. Our 'second' car is now taking a lot more use as the only car and my husband can be moved to a base further away at any time.
I am currently unable to get car finance or lease a car. I was told of car leasing for those with poor credit -available on very high rates. Would this be an allowable expense in either TD/Bankruptcy or DAS?
30/09/2011 11:57 am
Hi Pamjo.
If there is a genuine need for a vehicle and the cost isn't ridiculous (for a Porsche for example) then it should be fine.
As can be seen from other posts in this thread it may be something that is best addressed before anything like a trust deed or bankruptcy happens.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
30/09/2011 11:49 pm
Thanks-seems reasonable.
