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Topic starter
11/12/2012 10:40 pm
Hi,
I am more than likely looking to try and start a TD in the next 12 months as funding existing debt is getting harder and harder and also is likely to be ongoing for many many years.
I run my own business as a sole trader. My two achilles heels are either my van breaking down or me breaking down !!
Unfortunatley last week my van broke down, and after taking mechanics advice I have been forced to scrap the vehicle last Friday.
A vain attempt to gain finance on a used van failed miserably as expected. Luckily my sister has stepped in to rescue me and has obtained a personal loan at an extremely good rate to purchase a new van at a considerable discount over 5 years. She will remain the purchaser and legal owner of the van whilst I will be the registered keeper and will pay her back over the five years. In effect it will be a "hire purchase" agreement and I am investigating obtaining suitable legal wording for this if this is indeed possible.
Mt question is : Would this count as an HP vehicle for TD purposes? Is there any other implications of this arrangement to a TD ?
I am not trying to pull a fast one here , clearly my sis wants to retain control of the asset and ownership until I have paid her back accordingly and I would not want it any other way. Basically without a van I have no business and no income, so my priority is to have a relaible vehicle to use. The deal is going ahead whatever happen in the future, but just wanted some guidance re TD for future planning.
Many thanks.
11/12/2012 11:44 pm
Hi Buz
I think drawing up an HP agreement may be filled with danger (legally I mean)
The easiest option would be to draft a fairly simple agreement that the van is require for work, to earn money to pay the contribution and if you decide that the trust deed is the way forward, then get the trustee's agreement that the cost is an allowable expense. I don't see any issue with it to be honest.
Just ensure you get the agreement before doing anything.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
12/12/2012 2:04 pm
If the van belongs to your sister and the monthly payments are justifiable as a reasonable business expense then there should be no problem at all, Buz. Make sure that your chosen insolvency practitioner confirms their agreement to allow this arrangement to continue before you sign up to anything though - in writing.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
13/12/2012 6:40 pm
Thanks guys. The vehicle whilst remaining under ownership of my sis will become mine after paying the 5 years of payments and therefore the van will be an "asset" with a value (circa £4k max). If I can get more years service out of it I will do but realistically it will need replacing. If I keep running it and have ownership, and I am within a TD period, would I declare it as an asset and then seek agreement for it to be excluded, as it is required to continue with my daily business and produce my income.?
I am trying to clarify some scenarios to ensure I keep things right.
Thanks for your info it is appreciated.
Buz
13/12/2012 6:58 pm
Hi Buz.
If your sister owns it, and your trustee is happy for you to pay her for the use of it, is there any reason for it to become yours (and therefore an asset) prior to completing your trust deed?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
13/12/2012 8:06 pm
Good point TDA never thought of that...! Thanks 🙂
