Hi Gillianr2

You are correct, depending when the Trust Deed was signed, it should be value less what is allowed. ie £5200 less £3k.

Mark

Thanks so much for the reply Mark. My husband signed the TD in Sept 2009. We were told the car was worth £5400 at that time and that the choice he had was to either sell the car and surrender the money or he could find a third party (me) to pay monthly for it at £150 per month for 3yrs. I signed for this so does that mean that regardless of them supposedly having to take the 3k off I am still liable for this full amount. Seems really unfair.

I've found the original paperwork where it's stated that the car was valued at £6550 and the trustee has to recover £5550 of that so they have taken £1000 off of it. That was in August 2009. Would that have been correct at the time then? It would have made a huge differenc to the payments if 3k had been taken off it instead.

Hi gillian

Unfortunately the figure changed to £3,000 on 15 November 2010. So looks like it's £5550. Sorry, its a bit of a soar one.

Mark

Oh dear, aw well, cant win them all!

Can I ask an additional question here. If you are already in a trust deed but need to buy a car, the allowance is £3k? Is that right? Or does the increase just apply to someone who has taken out a Trust Deed after 15 November?

Hi queenanne26

The £3000 rule applies to trust deeds signed on that date where cars were owned on or before that date.

A trustee would query where the funds came from for the purchase of a car after the TD was signed and this may be regarded as a new asset and therefore the £3k rule may not apply.

Mark

Thanks Mark.

Sorry to drag this out, but I have a thread open that crosses this subject. This £1000 allowance was never mentioned to me at the time of signing my TD. It was agreed that the value of the car at the end of the TD would applied as additional payments after the 3 years were over. The thread covers what happened but is this allowance a legal requirement or at the discretion of the trustee? I ask because i've just had to borrow money to pay of the total value of the car without any allowance being subtracted. I queired this with the trustee and they said the allowance didnt exist. The £1000 was a benchmark to asses assets against and if above 1k then the full amount would be applicable for payment.

Thanks,

Rainking.

If the TD started in May 2010, what is the allowance for a car, £1000 or £3000?

Hi there

£1,000. The change happened 15 November 2010.

Mark

Hi rainking79

Sorry, jumped the queue there.

The Trust Deed in terms of best practice should follow the guidance for sequestration.

If they are not following this, I would certainly argue the point.

Mark

Thanks Mark, i'll push back to them on this.

Hi rainking

please keep us updated on developments.

Mark