Hi trustdeed1

I'd say it's good to hear from you again, but in the circumstances it is maybe not such a good thing!

I'm afraid that the trustee is certainly entitled to realise their interest in the car before terminating the trust deed or petitioning for sequestration.

With that in mind I think that your husband's interest would be best served by trying to come to some kind of compromise with the trustee on the value of the car. Maybe it is easier said than done, but surely if the alternative is them trying to force him to sell it and only being able to get £2k for it then they should be open to some negotiation?

Hi Kevin, nice to talk to you again. So if they were going to make him bankrupt they would sell the car first and then do it and then another 3yrs of payments again, have I got that right? They said they wont even consider talking in terms of less than the original 5k for the trust deed as that was what was agreed at the outset. So I take it for them it's either pay the 5k or be made bankrupt and lose the car.

Hi trustdeed1.

If this trust deed provider, or another trustee, were to make an assessment of your husband's current circumstances how much do you think they might calculate that he could afford to pay each month?

That might help to make a comparison between the current scenario and one in which sequestration happens.

It might also help to work out how long it will take to pay that £5000 over if it cannot be negotiated at all.

It sounds as though you need to be very careful about retaining access to this vehicle though?

Hi,

I'm not sure actually how much they would deem to be affordable as they wont take anything in to consideration as it is now. They say as the amount was agreed at the start that's what we have to pay regardless. We def need to be able to keep the car, without the car my husband would lose his job as he couldn't get to work and I wouldn't be able to get to any of our sons appointments either so we need the car (even though it's on it's last legs lol). I think 2k is actually an overestimate of it's worth at present. I think in all honesty, to pay back all the 5.5k left would take us at least 2years although prob a bit more.

It seems a little difficult for your trustee here trustdeed1. If they are correct that you agreed to this amount being paid in your original trust deed proposals then that will be the basis that the creditors accepted it and allowed it to become protected.

There's certainly no harm in trying to negotiate the figure downwards, but if that fails agreeing an affordable monthly payment to deal with this might be the least worst option on the table for you?

Yeah I think it's because it's the 5k equity from the car that makes it harder, if it had been the main part then it might have been a bit easier in a way to negotiate. Is the car was to be sold and then he was made bankrupt would he then have to start making monthly payments for 3yrs all over again? I just don't know if they will accept over 2yrs more payments as obv they wanted it all to be done and dusted last year.

That's right trustdeed1.

A new calculation of disposable income would be made and, assuming that there was some, the new payments would run for three years.

We've often heard from our experts that dealing with assets over a term up to around two years is acceptable, though practice may vary somewhat from firm to firm.

Well I suppose that is encouraging that they may accept us paying over 2yrs then. I think that will have to be our next move then, suggesting paying over 2yrs. Thanks so much.

They have came back and said they will not accept a further 2yrs as that would mean the trust deed will have been running for almost 6yrs and the creditors will not accept this. I don't know where we go from here then 🙁

Did you ask what the maximum period is that they would consider trustdeed1? That would at least allow you to assess whether you can meet their expectation.

The practical reality is that they aren't going to get the £5000 if the car is sold from the information that you have provided.

Maybe ask your husband's trustee for suggestions.

If they won't accept extending the Trust Deed and you don't have the money to pay what they want then you are back to

1) having TD terminated and then applying for sequestration
2) trustee petitioning for sequestration

Either way, you would need the trustee to facilitate this.

I cannot imagine they will look to force a repossession and sale of the car given the circumstances with your child, so have a feeling that they will agree to one of the above, probably option 1.

It is a real shame that your husband is facing sequestration having been in a trust deed for so long. At least if it happens then the contribution level should be much more realistic.

I did ask if they would consider discharging him with his debts but they gave a very round about kind of answer, like it's something they could do but wont as they would prefer to sell the car and make him bankrupt themselves. I honestly feel they are kind of scaremongering in a way. He has sent off the latest income and exp sheets and it shows we can afford £200 a month. They did originally say he could extend by 2yrs which would be a year in Sept. If he made 17 payments of £200 that would be £3400 so alot more than if they sold the car but it seems they are hellbent on telling him he needs to pay the full 5k or lose the car 🙁 It doesn't make sense to me.

Have you provided evidence of the car's value to them?

No, I don't really have any evidence other than parkers guide tells you what it would be worth now.