I can't see it affecting anything. Your Insurer (in theory) would pay out the market value of your vehicle, so you would replace like for like and therefore be left with an asset of same/similar value as you were before the crash.

@cif sorry I should have added that about a year or so ago, before trust deed had ended then I was in touch with trust deed company to say we needed a bigger car and how does it work if we sell the car and they said that if we sell the car then the £1400 or whatever car was valued at when added to trust deed would have to be paid to them. So if we sold car for another car then the £1400 would have to go to them then we keep whatever is over and above, or if used toward finance then we’d still have to pay the £1400, i think to  release the car? 

so I planned to just make it to end of TD with that car and cross that bridge when it came to it. However if it comes back from garage as a write off then it won’t even be worth the £1400 and it’s literally due to end in two months time. So I’m not sure whether because I’ve Paid 7 months worth toward car then I’d only owe them what I’ve got left to pay which is probably about £300? I hope this makes sense. 

I’ve read email again and I’ve not explained it very well so I’m copying in what email says ..

“

As you are aware your car is an asset.  When you signed your Trust Deed your car was valued at £4570.00.  As this valuation exceeds the Accountant in Bankruptcy’s limit of £3000 you are required to pay the difference of £1570.00 to the Trust Deed to discharge your Trustee’s interest in the car.  It was agreed at the outset that the term of the Trust Deed would be extended to allow you pay this sum at the end, as this would allow you to retain the vehicle for use.

If you wish to now sell the vehicle you will be required to pay the sum of £1570.00 to your Trust Deed from the sale proceeds, before any new car is purchased.”

that will make more sense. However I’m two months away from the funds being e gathered and trust deed ending .. I maybe just need to get in touch and see. At the rate insurance is taking to get an estimate then it may take that long as they are really backed up .. 

One for your Trustee but I can't see you having to pay any more than you agreed on the asset value when you extended it, so it would be the £300 you would have to pay over.

You shouldn't have anything to worry about, K1191130.  I would be very surprised if the outcome is anything different than you having to pay the last £300 and then your obligations would be finished.