Hello RBD421 and welcome to the forum.

It's normal for cars above a certain minimum value to be included within the scope of a Trust Deed.

However this should certainly have been explained to you in advance. Was the subject not mentioned at all?

Hi RBD421,
Sorry to hear of your extended PTD, sure you'll find you're not in a lonely place! I have a meeting on Friday, where I'll be bringing up a question pertaining to the extension of PTD's, under different guises eg. PPI, assets etcet. It appears that some IP's extend a PTD, using various grey areas available to them, then continue to draw funds from debtors accounts. If you're happy to do so, you could ask your IP how this extra money will be distributed?

Hi, question for the experts! If the car is worth ?ú2100, and you are allowed to keep a car (asset) under the value of ?ú1000, surely it should only be the equity in the car that needs to be repaid ie ?ú2100 minus ?ú999.99? I'm actually really interested in discovering the rules and regs on this one!

Hi eoin8008,

I think that the equity value of the car is the full value.

It just happens that cars of lower values tend to be ignored as the asset itself isn't especially significant and the costs of sale might consume a lot of the proceeds of the sale.

Trustees have a certain amount of discretion when it comes to assets such as cars in scottish trust deeds.

Trust Deed Assistant is correct in saying that the full value of the car can be requested by the trustee - if necessary by selling the vehicle in question. However, in practice I think most trustees would accept an offer from the debtor (or a third party) of an amount lower than the full book value, given that there would be costs associated in selling the car if they had to go down that route. It something that is normally negotiable.

Certainly this should all have been discussed and clarified before the trust deed was signed so that there aren't any nasty surprises!

Hi Folks and many thanks for the welcome. I wish I had found this forum before I signed the Trust Deed as many people say.

The equity in the car was never mentioned so I am totally thrown by all this. Angry and upset at the same time. All the woman mentioned was that I could protect any equity in my house by having someone (my son paid it) pay ?ú500.

To be honest I thought the IP had been brilliant throughout the 36 months until now. I have asked why dont they offer the same kind of thing to protect car equity like they do the house and have made an offer on this basis but I can guess what their answer is going to be!

Once I hear back from them I will certainly ask how this extra money will be distributed. I'm sure my creditors are getting ?ú0 due to the fees they have said they have incurred to date as it stands.

Hi RBD421, you should be congratulated on coming to the end of your PTD, not an easy achievement by any stretch of the imagination. The problem with your car is truly appalling and simply shouldn't happen. Might be worth pointing out to them you need your car for work, and need to work to make the payments they want.

Hi there,

The ?ú500 to "protect the equity" in a home only arises where there is no equity in the home at the start of a Trust Deed. The payment (please remember not all firms charge this but provide the same outcome anyhow) protects against any future increase in the value. If there were equity at the start of the Trust Deed the ?ú500 option will not exist.

It's different with cars; they almost always go down in value rather than up. Therefore the logic of paying to protect against the risk of the asset appreciating isn't really relevant in this instance. The car is either of so little value that it is basically ignored, or it is of sufficient value that the Trustee is obligated to deal with the value of it in some way.

As Kevin suggests, I hope some negotiation helps to bring all of this to a swift conclusion now that you have completed the monthly payments.

Hi I have offered them a token amount but doubt they will accept it. Due to other things to do with the house eg badly needed repairs which are affecting the value of the property and therefore my mortgage terms and insurance, I will truely struggle to give them money for another 14 months like they are offering to allow if I cant pay the lump sum. How could I pay a lump sum anyway as my PTD has left me nothing each month (which I dont mind as that was better than having negative money each month!). They have still a security over my house the bank says despite this ?ú500 having been paid ages ago so even if there is any equity now in the property I cant touch it do carry out these repairs or pay them their lump sum. Do you know what a reasonable offer would be? They are looking for for a bit over ?ú2,200.

Many thanks for all your help. You are all wonderful on here. I feel so much better now I have found this site! I know I am not alone! [:)]

Is there any family member or friend that might be able to step in with a lump sum RBD421? If so, how much?

I think the answer to your question is likely to be quite vague but the more that you can offer the higher the chance of success. A lump sum is also attractive to your Trustee/creditors as it can help bring everything to a conclusion so much sooner for all concerned. For that reason a lump sum a fair bit below ?ú2200 might stand a chance of being accepted.

My son has helped me out loads but he hasn't a lot of money either as he has an ex who owes him a lot of money and he busy trying to get that back himself. I wouldn't ask my partner as he has enough on his plate too and it is my debt. xx

Apologies for the kisses lol busy sending messages to my son on messenger too lol. 🙂

Hi RBD421,

Please let us know the response you receive to your offer as and when it is received.

I'm a bit confused aboiut the ?ú500 down payment deal. I'm about to start a Trust deed with KMPG but haven't signed anything yet. I don't have anyone who can give me ?ú500 and I will struggle to find this money but if I think it'll be worth it 5 years down the line then I'll do it. I have to take the Trust Deed over 5 years because I have so much debt and can't make big payments each month- ?ú180 is the max I can afford. I have read on here that not all companies ask for ?ú500 and at the end of the day it makes no difference to the outcome. Should I be looking for a different company before I sign anything.