Did your trustee not give you any indication of how they would treat the car at the time this was arranged, Bampot?

If they do look to realise its value your argument would be that the car belongs to your parents and they are merely allowing you to use it - unofficially leasing it to you I guess. Presumably they can prove that they purchased it and not you. As mentioned elsewhere on the forum, there is a distinction between a vehicle's registered keeper and its owner.

Hi Kevin, nothing was mentioned at the time. I explained the situation to them. They were very understanding and adjusted our payments. 8 months in to the trust deed I was still quite naive and not completely aware of the financial interest they would have on the car. The loan for the car is in my parents name and they came with us to look at the car. However, it was both my husband and I that handed over the money. I already have a relative paying £5000 to release the trustees interest in our house, which we will have to pay back. I'm worried that there will be further monies to be paid. I'm not sure how much more we can ask of our family to bail us out. If the car was worth £3500 and their interest was only for £500 then fair enough, that's manageable. But if its £3500 then thats a different story and I'm not sure where we would get that kind of money. We are having to get into debt again in order to complete the trust deed. I know the topic has been covered re cars. Though haven't read a thread similar to my situation. Thanks for the quick reply!

Hi Bampot

There are a few elements to this. The balance I suspect will be anything over the £3000. However as the loan is in your parents name, then they retain ownership and this should not be seen as an asset.

My guess is that they will look at the value of the original car to make the decision.

Mark

Thanks Mark! This offers some comfort. The old car would only have been worth about £1000 in working condition. We sold it for £150, which I'm sure doesn't breech the conditions of the trust deed? Although the passage through the trust deed has been difficult at times, some months harder than others. It has been fairly smooth with no major hiccups. I even managed to obtain a new phone contract with a new supplier, which was a huge surprise! So not completely written off getting credit. But, as we near the finish line I'm starting to panic about things that may not even be an issue. I'm always glad to read the forum to get some reassurance. So thanks!

Hi Bampot (how often in life do I get to use that as an opener!)

I totally understand and its the main reason why I explain everything at the start and confirm matters in a post meeting letter. No ifs or buts, or could be or should be. If we can be exact, then it takes away all the unknowns and that, in my experience, is the main thing.

I'm sure it will be fine and hopefully you can look forward to that final payment and the prompt closure of the Trust Deed.

Mark