Hello carol3110 and welcome to the trust deed forum.

If you didn't inform your trustee of a pay increase it's natural that they'll want to deal with it retrospectively once they do find out.

If any of your expenses have increased you may be able to argue that some of this should be offset against the balance due to your trust deed for this extra pay.

In terms of the car, how much do you think it's worth currently? How much are you being asked to pay over?
Did you get anything in writing regarding the status of the car at the start of the trust deed?

Hi, I have a letter stating that the car has been valued at £3,870 and that it will not be revalued at the end of March. I am therefore being asked to pay 75% of this either by extending my trust deed or paying a lump sum. I have nothing in writing about the car other than I was advised that it was inconsequential because it would not be paid when the TD ended. The car is probably worth this value now but won't be at either the end of the trust deed or the end of the HP agreement. Thanks

How much is still to pay on the HP agreement, carol3110?

Really this should be treated in the same way as a house - any secured debt deducted from the value first and only the equity sought.

Have they told you who they have used to value the car?

Also, to the experts and advisors here, is it fair to use a valuation of a car 6 months before the end of the PTD here?
Car values can drop a fair amount in that time.

Hi Jinty,

I think we're possibly more interested in how much finance remains outstanding on the vehicle at this stage.

It seems like the value of the "asset" might be pretty limited when looking at it the way Kevin describes.

Doesn't that mean they should only be looking for what the car is worth after the outstanding balance is deducted though?

I think that's the point that Kevin is making Jinty.

It's been a while since I looked at this post. Your replies were very helpful indeed. Now I am at the end of my trust deed - last payment due, the trustee will still not tell me what is happening other than I need to pay 75% of the value of my car 6 months ago which was 3,870. The outstanding finance is £2,608 - does that mean that I will need to pay the difference before I am discharged? Surely it is fairer to pay the difference which is £1,262 as opposed to £2,902.50 which is what the trustee is suggesting!!
Can anyone help as I am really worried about being able to raise this sum of money and can't sell my car. I also do not, under any circumstances want to have to extend the TD payments.

Hi carol3110.

If the finance is secured against your vehicle I cannot see how the entire value could be treated as an asset.

Perhaps you should set this out in writing to your trustee (personally) and ask that they review their decision?

Thank you Amy, I did write to them in October but they said they wanted to contact the HP company themselves. I think I might send the formal calculation of the outstanding HP balance along with a letter. Thanks again

I think the Trustee needs to take account of any finance secured against the car and certainly can't look at the 'gross' value in his calculations.

There is also the argument that the car under normal conditional sale/HP agreements do not form part of the estate as the agreement clearly states that ownership does not pass until the final payment is made. If it does not pass until the final payment, does the individual or the Trustee have the legal right to sell it. So is it an asset???

Mark

I concur that this vehicle has no realisable equity according to the figures. Has the Trustee conducted a revised update of the vehicle in line with the up to day settlement figure? The de minimus level may have been £1,200 at the time your Trust Deed was granted therefore you would be required to pay only the equity over and above this sum.