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Scottish Trust Deed Forum
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Topic starter
17/05/2009 6:08 am
Hi there ...
I made my 1st payment to my Trust Deed in October 06, and reckon I should be nearing completion very soon.
I have 2 questions ... firstly when I took out the Trust Deed I had car finance, and basically I was allowed to keep my car since it was essential for me travelling to work. It was a 4 year finace agreement which doesn't conclude until April 09 ... My question is what will happen to my car (and finance agreement when I'm finished paying the Trust Deed) ???
Second question is ... how will my credit be affected when I wish to apply for finance to buy a new car next year ???
Many thanks ...
tb2805.
18/05/2009 9:37 am
Hi tb2805,
Welcome to the forum.
A Trust Deed will remain on your credit file for a total of six years. This may have an impact on whether lenders will lend to you and what terms they will offer. It's not really possible to be more specific than that as it will depend on each lenders assessment of your ability to repay debt/finance - they all handle this in slightly different ways.
Could you clarify what you mean about what will happen with the car after the trust deed completes? Are you concerned because the existing finance agreement happens to be coming to an end around the same time?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
18/05/2009 9:24 pm
Hi ...
Thanks for that ...
What I meant regarding the second part of the question was ... I vaguely recall my IP saying to me that I may have to make additional payments at the end of my Trust Deed because the car will have a value ... I can't quite remember ...
I suppose what I'm asking is that (with my Trust Deed finishing in September, and car finance finishing 6 months later) will there be any claim from them regarding the car ??? ... or do I continue paying for my car, and then own it outright next April ???
Hope this makes sense ???
19/05/2009 9:43 am
That makes perfect sense tb2805; thank you.
I'm sure Mark or Kevin will be able to let you know exactly where you stand very soon.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
22/05/2009 2:57 pm
Hi - sorry I never managed to reply sooner.
Technically your trustee is meant to calculate what equity there is in the car and ask for that from you - ie its value minus the outstanding finance. Often this is likely to be minimal due to depreciation so there is no payment to make.
Hope this makes sense!
Kevin
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
23/05/2009 9:33 am
Hi tb2805
There are a couple of important points here.
Firstly the Trustee should act in accordance with the guidance of a Trustee in formal Bankruptcy. In this respect he/she only has interest in vehicle with a value in excess of ?ú1,000.
Secondly, if the car is under a Hire Purchase agreement, then the car should not be regarded as an asset. The HP agreement will clearly state that ownership of the car does not pass to the owner until the final payment is made and that final payment appears, from the information, to take place after the expiry of the TD.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
