Hello laroone,

Welcome to the Trust Deed forum.

How much would you estimate that the car is currently worth?

Let us know and the experts will share their thoughts with you.

hi i was under the impression that since the trustee wrote to saying that they have no intrest in the car, i thought that when the payments were finished in july, then the car would be mine and left alone, my worry is that if i keep the car another year, can the trustee come and take it at the end of my trust deed next july, and sell it as its is an asset, surely this is not fair as i have kept up the payments, the can is 17 years old and worth maybe 2k

If you have it in writing that the Trustee has no interest in the vehicle this should be sufficient and I find it unlikely that the Insolvency Practitioner would reneg on that agreement. Should the Insolvency Practitioner for some reason decide to pursue your vehicle, discussions suggesting that a copy of the document would make it's way to the IP's regulatory body - which should be detailed on all correspondence you have received from them - should put an end to the matter.

One thing to be mindful of though is that depending how long remains on your Trust Deed when your Hire Purchase Agreement ends it is entirely possible that you will be requested to pay the balance towards the Trust Deed.

I.e if you were paying ?ú100 on your HP which stops, you would then in theory (allowing for increases in your day to day living expenses) have a further ?ú100 surplus per month which your Trustee could argue should be utilised for the benefit of your creditors.

How long would you have remaining on your Trust Deed agreement upon the conclusion of your Hire Purchase?

hi thanks for the comments and advice , i read some comments from mark mac,fadden on a similar question he answered, and he commented that an hp agreement ie on a car is not regarded as an asset and when the payments finish then the car belongs to me, as for the payments when they finish in july, i hope that i will not have to increase my monthly
payments, as like everyone else in the country my earnings have dropped
probably by ?ú200.00 per month maybe more , so i do my next reveiw my payslips will be a lot less than the pevious ones i last sent in, trust deed finishes next june , i hope 36 months,

Any reputable IP will take into account the decrease in your monthly income.

Good luck with the remainder of your Trust Deed.

Hello laroone,

I don't think that is a correct or full reading of anything that Mark has previously posted.

While HP is in place you do not own the car therefore it cannot be an asset. Therefore you could have HP in place that finished after a Trust Deed has finished where the car would not be taken into account.

If HP finished during a Trust Deed the car becomes yours, you have acquired an asset during the Trust Deed, and this will need to be taken into account as an asset if the car is worth above a certain low valuation.

I think we should be careful Trust Deed assistant

For example, if the HP liability is ?ú2,500 and the car is valued at ?ú5,000 then the car would be as Asset and should be shown as such on the Statment of Affairs to creditors.

It is a rather simplistic view that all cars on HP are not "assets" using the above example.

However in this case, I suspect the cost of realising the vehicle would outweight the benefit to the estate and therefore it would have no benefit to the estate.

However, please note that if a Trustee was to send out a Current Status Report and it is shown that your payments to the car have stopped, then the Trustee may review your level of contribution for the benefit of your creditors and request a increased contribution for the remainder of your Trust Deed

What you say about HP cars potentially being assets is true bpm45d0, but in practice is quite rare.

Such a scenario would normally only arise if there was a big deposit paid and the car was purchased quite recently, as otherwise depreciation in value (which is quite rapid with most cars) tends to account quite quickly for any equity that there may be in excess of the outstanding HP liability.

I do think bpm45d0 is right though, I doubt the vehicle will be of sufficient value at the end of the trust deed to warrant being sold.

If your income has dropped substantially, laroone, I'd be surprised if you have to pay higher contributions when the HP payments end.

hi thanks for the advice kevin and bpm45do, the car was worth around 2.5k at the start off my trust deed two years ago, in 2008, the trustee said at the time they had no intrest in the car as long as i kept up my payments, the final payment is in june this year and that ends the hp agreement, my trust deed finishes as i said next june, i look forward to the deed ending and some light at the end off the tunnel, i hope that there are no problems with my car at the end off the period, as it was hard keeping up the payments monthly, and everything else, i was on a debt managagement programme for the four years previous and payed out a lot off money and got nowhere with that, so the trust deed was my only option, thanks laroone,

Best of luck with everything laroone