Hello lp2h and welcome to the Trust-Deed.co.uk forum.

Firstly; congratulations on having almost reached the end of your Trust Deed.

This situation with your car and how it has been dealt with seems a bit odd. I'm wondering if Mark or Kevin might comment on this situation.........

Thank you TDA
It has always seemed odd to me too and the fact that no one seems to want to give me a straight answer is annoying, when i have trawled the Debt websites offering TDs they say things like "the benefits of a PTD are" "keep your House, Keep your car" but in January i will only have paid half the total amount ie the cash amount if i had to pay the car amount that would take me another 3 years.

I'm wondering why the car wasn't disposed of at the time you signed the Trust Deed if you didn't need to use it.

What would it sell for now?

Interested to know what Kevin or Mark think as I might be missing something.

Hi TDA
According to Parkers website the car is worth ?ú3000 to ?ú3500 now but as i mentioned it has been off the road for 3 years and 4 months approx so i am not sure on the true value, the benefit of this of course is that it has very low mileage and would be seen as top book (as it were) i did fill in Marks email bit??

The support team have left a voicemail for you lp2h. There will be more information when one of the experts can read your description of the events that have led up to the current situation.

Thanks TDA
Got the Voicemail, starting to get worried now have'nt really known over the last 3 years what would happen at the end but always assumed it would be a walk away situation because of the "Dont worry about the car, the car is not an issue" comments.
When i initially contacted all my creditors the car finance company wanted me to pay for them to come and get the car to recoup some money but i was advised not too and not to pay any payments even tho i was being phoned daily to do so.

Hi all

Ip2h, I assume the car is not on finance/HP etc?

Generally, if you do not need the car, then the IP can arrange for its uplift and sale. The proceeds will go to the Trust Deed, but you won't/can't be chased for the balance to make up the ?ú7k.

I hope this helps.

Regards

Mark

Hi Mark,

My reading of lp2h's post was that the figure of ?ú7000 for the car was set at the outset of the Trust Deed and formed part of the proposal to creditors. Do you read it differently?

Perhaps lp2h could also confirm whether that's the case?

Hi TDA

I suspect this is an error on the IP's part as using the ?ú7k figure would be an estimate of either the value at the time of signing and should have therefore been sold at that time or represented the value after 3 years ( unlikely!)

Net effect is there will likely be a net reduction in the value if this is sold, however the IP can't pursue for the balance if it is sold for under ?ú7k. I assume there was no agreement to pay ?ú7k outwith the sale of the vehicle.

Mark

Hi TDA and Mark
i think you are both right the 7k was an integral part of the amount offered to creditors at TD end but it was based on the value of the vehicle at the start of the Td which must be an error, because my paperwork states that the POT will be ?ú14,200 (the car is a ?ú7,000 asset) Thanks

Hi
Originally the car was on Finance/HP but the finance company sold the debt at the start of the TD

Was the debt on the car included in the Trust Deed lp2h?

Hi TDA
Yes the car debt was included in the TD, it is classed as an asset and has an "Estimated realisable value" of ?ú7000. Could the trustee still sell the car if i cannot pay whatever they think its worth???

Hi Ip2h

The guidance is that you can use the car if you maintain the contribution payment. If the car at the end has a value in excess of ?ú1,000 you will be asked to pay the difference (ie worth ?ú1,500, you pay ?ú500) If it is ?ú1,000 or less, then you pay nothing.

I sincerely hope the Trustee will not try to go down the route of trying to get you to pay ?ú7k, being the original value.

Mark