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(@joannes1991xx)
Active Member
Joined: 2 months ago
Posts: 3
Topic starter  

Hi

I entered a TD in May 2020. At that point I had a Hire Purchase car. However as time went on I couldn’t afford the car and this was handed back due to a relationship breakdown, so the hire purchase was never completed fully. I received £4000, which I then bought a car outright with for £3000 and had to buy furniture for my house with my son. 
I have filled in all the annual reviews showing I no longer pay HP. Which has all gone fine for 2 years. 
my car is now looking to be costing me more than I can afford on repairs. I’m looking to sell it and just borrow family cars when I need it. My question is, will the TD still look at my car that was on hire purchase at the end of my TD, even though that was handed back in 2021? And will they look at how much I sell my car now for(the one that was bought for £3000)? 


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4197
 

Hi.  Did you let your Trustee know about the £4,000 you received and what it was used for?  They aren't likely to have any problem with you using £3,000 to buy another car instead if you needed a car, though there is a chance they might say that the other £1,000 should have been paid in and insist that is made good prior to the end of your trust deed.

In respect of your current car, if you are planning on selling it and not replacing it then the proceeds could reasonably be made available to your creditors in the Trust Deed.  You should therefore let your trustee know about your plans and be prepared for them insisting on the proceeds being paid in to them if you go ahead.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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(@joannes1991xx)
Active Member
Joined: 2 months ago
Posts: 3
Topic starter  

@kevin-mapstone thank you Kevin, I unfortunately didn’t let them know, I was quite naive and just thought that’s the finance gone and I have a new car not thinking they would need to know. I have contacted them over the weekend and they have asked I email them so awaiting a reply. 

as I still need a car, I am looking to trade in my car as a sort of deposit for the car my mum would buy that I would use. Do you think that is something they would accept? 


   
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(@joannes1991xx)
Active Member
Joined: 2 months ago
Posts: 3
Topic starter  

I must add, that all my annual reviews since were updated that I no longer paid the finance payment monthly. 


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4197
 

They may well be fine with that arrangement, Joanne, but you should definitely speak to your trustee firm about it first and get their agreement.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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