Nevertheless, I am sure that most trustees will balk at signing anything that says that they will assume personal responsibility for any debts that could accrue, whether likely or not. If the Motability people insist on that then you could have a problem.

Ok i think i finally got to the bottom of it, I just got a call from a man from motability who actually deals with my whole motability account.

He told me the two people i spoke to and emailed me back were there customer services team and he wanted to clear up a few points. This was because i emailed them back again emphising what i said above and again your comments kevin as i thought that was a bit presumtious that they assumed a OR/TRUSTEE of a bankruptcy would just say yes ok i agree when its really defeating the purpose.

Here's what he told me.... this maybe usefull for anyone with motability car who is looking at there options or if any the advisors want to add any the relevant information to the site.

He said any motability customer who goes bankrupt must inform there accounts team or motability manager as soon as they do. The reason for this is so that a hold is placed on the account until there contacted by trustee/official reciever in the case of the vehicle itsself. If a motability agreement is allready in place The car will not be taken from the hirer just because a hold is placed on the account, as long as the payments are being made directly from the person benefit they have no problem with a continued agreement. This is just incase the OR try to imply the car is an asset if the relevant agreement for a hired motability car is not presented on a case of bankruptcy. The hold is also in place in the future instance that the court say that so much has to be paid from the benefit that is used to pay for the vehicle which they have only had a very rare case in which anything like this has happened. In the case that it does affect the benefit which pays for my car. They would then contact me and give me a date in which my car would be collected. This also prevents any new applications being made. (Ie: me applying for my new car in september for collection in decemeber) until they are sure that the benefit that pays the car is not affected and that the OR has no objections to a new application being made for a new vehicle.

If the bankruptcy goes through without any problems and i am declared bankrupt. In the case of future lease hires of motability vehicles. what i need ro do is ask OR/TRUSTEE for a simple letter which simply says they have no intrest in any vehicle hired to me from motability services and they have no FUTURE intrest in any new agreement which may take place in the renewel of the car. He told me to ask the OR/TRUSTEE when i speak to them if they do this they must include the words no future intrest in the letter as they take this as there final word and have no need to have any future contact and unhold the account and process any future applications as normal. With me as i am due to place an order for my car at the end of august/ start of september the letter must be present to them before i can order my new car. If the letter has not been provided in that time they will make an exception to extend the agreement i have at the moment for a small period of time until this is sorted out. Meaning they will not leave me without a vehicle but they do need somthing in writing to say its ok i can continue with my agreement before a new car can be leased. If a letter is not recieved they can only extend an original agreement for so long. There moto is to keep people mobile so they will try there best. However if no acknowledgement is given then a new application can not be made and its at there discretion and the answer would simple be no to the lease of a new car through the motability scheme.

On the situation with mileage. Everytime a motability car goes in for its service the mileage on the clock in noted. That is why they allow you to use 20 thousands miles a year and 60 over the period of 3. If you go over 60 thousand in 3 years they then begin to charge you for excess mileage. The man i spoke to has said in the many years he has worked with motability he only ever had to deal with one case which was excess mileage case. They vary rarley find that anyone goes over there allowance in 3 year period. He feel customer services expressed there concern about this to me to cover all there bases and yes it is a valid point. But as i explained not every bankrupt is the same and up and down country. If my or/trustee said they had no objection to the future applications and i was to get my new car, if after the 3 years i went over my mileage and i was discharged from bankruptcy then he agreed it would then be down to me to cover any excess mileage debt and they would then come to an arrangement or allow the accounts team to assess the situation to make a decision on weather they would charge me or not.
In regards to the debitor application pack form. I explained that i felt the questions were not clear. He asked me to repeat the questions to him.

Here was his answers:
Do i own a car? No i do not the car i have is legally owned by motability operations and on looking at my hire agreement my name is listed as hirer and not owner. The owner section of the agreement list motability as the owner. They are the ones who have the V5 Form.

The second question if yes is the car motability or hire agreement: He says it is motability but he feels this question applies to the BUY SCHEME of motability and that the question is not clear on this.
There are two plans on motability one is the lease for 3 years and one is the Buy scheme. If i was to have been paying for the car through motability on the buy scheme i would thentick yes and provide the information yes its under motability.

The next part of the form is about mileage type of car and so on. He says this is not relevant because this only need to be filled if the car was on the buy scheme not hire scheme.

The last question: do i have use of another vehicle. He said yes i do i have use of a motability HIRE Vehicle. He them said to add a letter explaining all this along with a copy of my agreement especially the page that says Hirer (my name) owner (motability)
He said this can prove without doubt that the car is not mine, can not be classed as an asset and can not be held to be sold for to the payment of debts.

So this has cleared up a lot of questions.

Well done in recording all of that and sharing it. All seems very reasonable once you get through all the layers.