Hi tessa57 and welcome to the trust deed forum.

It is normal that assets, including cars above a certain value (now £3000), need to be dealt with by trust deeds.

It does seem odd that this wasn't discussed with you. Have you asked them to point out the relevant small print that they mention?

Aren't you being asked for more than 50%?

Yes, I would agree with TDA, ask them for a copy of the small print...along with a magnifying glass! While they are at it, can they check the maths, as you seem to be paying 80% of the value.

Hi thank you for your replies,
In my letter it states that the car has been valued at £1,110 per wisebuyers on-line guide. It concludes ...I propose to allow the debtor to pay £555 in settlement of my interest in the vehicle. I am currently awaiting the debtor's proposals in this respect.The reduced figure takes into account the potential costs associated with uplifting and selling the vehicle at auction.
I'm a bit confused as I recieved another letter with much the same information but suggested that I continue with my monthly payments after the expiry of the trust deed in order to realise this sum,which is this month. If I choose to continue with my monthly payments, they will extend it by 2 months on 1 contribution of £330 and 1 at £225.
How have they come to this amount?
I was told that they have been valuing the car 2010, 2111, and again in march, which I wasn't even aware of. My car is a wee nissan micra 2004 and I need it for my work.
I was so looking forward to this month being my last month of payment.

Hi tessa57.

It is normal for cars to have to be dealt with where they are worth more than a certain sum (now £3000), but of course it should also be normal for that to be explained before the trust deed begins.

The numbers make sense for 50% of the value now, previously it looked like you were being asked for £330 more than 50%.

If there is another way to raise this £555 and pay it over the trust deed could be brought to an end sooner.

Of course you could ask to see the small print to confirm that this is part of your agreement...

Hi Tessa,

You may wish to obtain a copy of the Statement of Affairs sent to "all known creditors" - you should have got a copy of this at the time it was sent. What does that say about the vehicle - is it listed as an Asset on the Statement of Affairs and to what value were the creditors told the Trustee would be realising. Along with the small print in the initial documentation you would be able to assess how much you were aware of the vehicle position.

Hi Chris,
Thank you for your reply I have just spoken with my trustee and he stated that they put down Nil beside my Equity and Assests as this is always just an estimate, as things change all the time. I have a copy of this. The creditors will have recieved a copy to. Since the car was valued at £2,500 at the time of my trust deed in 2009, he stated that it is better to under estimate in case things happen example he gave me was... if I crashed my car and it was written off value zero. As my car is valued now at £1,110 they have a duty to the creditors to realise this equity and I am only being asked for £555.
When I took out my trust deed in 2009 he did state that the cars value was over the allowance of £1000. The law has now changed to £3000 but since I took out my trust deed before this I still have to realise equity on my car to date.
Grrr hope this makes sense!!!

I think your trustee's position isn't unreasonable tessa57 - the only criticism being that they should have explained at the outset that this was how it would work. Must be frustrating for you

Agree with Kevin on this matter - think the Trustee is being very fair with the amount to be realised.

Thanks guys for all your help, Yes I would agree it should have been explained to me, then I would have ben prepared, but on the positive side I have only 3 months left and I am really happy that I have managed my finances although at times has been really hard, I have done it 🙂