Hello Scotslad.

I don't suppose you've been misled if they genuinely thought it likely that the car would be worth less than £1000 at the end of the arrangement?

I can understand that you'll just want everything finished though.

I would certainly say that you haven't been misled as the quoted passage seems quite clear.

One thing to bear in mind however is that the de-minimis value set by the Accountant in Bankruptcy with regards to vehicles has subsequently increased to £3,000.

Whilst I have no idea the atitude your Trust Deed company will take, it might be worth pointing that out to them. I can't imagine they would be so bullish as to pursue the matter on that basis. Perhaps one of the experts on here could confirm how they would treat the matter?

Hi Voice of Reason.

I think it's as simple as when the trust deed was signed. If it's before the change £1000 applies, if it's after £3000 applies.

Thanks for the replies. I signed before the increase to £3,000 - a matter of months before if I recall correctly.

Should I contact them to query this? Or only answer when/if they ask for details about the value of the car or will they do this themselves?

quote:

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Originally posted by Trust Deed Assistant

Hello Scotslad.

I don't suppose you've been misled if they genuinely thought it likely that the car would be worth less than £1000 at the end of the arrangement?

I can understand that you'll just want everything finished though.

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Sorry - I was supposed to reply to the above post saying I'm surprised with the current value given the mileage and that the car is French! 🙂

Hi ScotsLad,

I presume it's you who has placed the value of £1,500 on your car? Your Trustee may value the car at less than the £1,000 limit that was in place at the time you entered into your Trust Deed.

There are websites online that can give you a free valuation. When we look at an online valuation site, we normally go on the poor condition valuation. You may find that if you take this value, it's less than the £1,000.

If you and your Trustee can't agree on a valuation i.e. they say it's worth more than £1,000 and want you to continue with payments then you can have a car dealer value the car or an auctioneer. They may do this for free or a small fee. Your Trustee may be prepared to accept this and abandon their interest.

quote:

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Originally posted by Chris Wardle

Hi ScotsLad,

I presume it's you who has placed the value of £1,500 on your car? Your Trustee may value the car at less than the £1,000 limit that was in place at the time you entered into your Trust Deed.

There are websites online that can give you a free valuation. When we look at an online valuation site, we normally go on the poor condition valuation. You may find that if you take this value, it's less than the £1,000.

If you and your Trustee can't agree on a valuation i.e. they say it's worth more than £1,000 and want you to continue with payments then you can have a car dealer value the car or an auctioneer. They may do this for free or a small fee. Your Trustee may be prepared to accept this and abandon their interest.

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Hi Chris - thanks for the reply.

It was indeed me that put this value on the car, I used Parker to find out the fee and went with the 'Poor' value.

The car is on Hire Purchase, and the agreement isn't due to end until 2014. Does this change anything? I was just thinking on HP I don't actually own the car until the final payment - so can it be considered as an asset?

Hi Scotslad

If it's on HP you dont have title to the vehicle and the value would be the actual value of the vehicle less the outstanding finance. From the information, this is likely to fall below the £1,000 limit and should therefore be excluded.

Best speak with your Trustee, however I don't see a situation from the information you have provided where this will be a problem. The only exception or argument the trustee could make is that he could sell the Car, pay off the finance and keep the balance, but in the current market, this is a very unlikely scenario.

Mark

Mark

In that case Mark it's likely to be a negative figure.

Good to know - thank you.

Hi Scotslad

No problem at all. Trust Deeds should be set up at the start to kill all unknowns. That way there is no doubts and peeople can look forward to the 3rd anniversary with no worries.

Mark

PS Don't be rallying the car through the streets just to make sure!!

I'll already removed the doors - not great in this cold weather though! 🙂

When exactly was the date that the threshold went from £1000 to £3000?

Hello upstream.

I believe it was 15th November 2010.