Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

By Atmywitsend
#203124 Hi guys

Ok, currently 18 months into trust deed, with a car valued at only 1k so at end of TD no interest taken by IP. Heres the thing..... a friend of ours has given us a car for nothing!! Its been stood for 2 years therefore needs some work i.e new tyres, battery, disc pads, breaks etc. On completion of this work, the car is in mint condition and valued at approx 12k. Our friend hasnt yet signed the ownership over to us as we are unsure how we will stand with the TD. We originally were going to do the car up and use in place of our original car because although our own car is worth virtually nothing, it is a 4ltr engine and gas guzzling is costing us a fortune, its not very economical.

Here is the dilema, we would like to take this car obviously but are not prepared to hand over the excess money (approx 11k) to the TD at the end of its term. Is there any way we can get around this? We thought of him giving ownership to our 17 year old daughter (she cannot drive yet) then obviously get us all put on the insurance, how would this work with the TD. Would they still class it as our assetts? Would they actually know about the new car? Or is there any other way we can take ownership of this car and use it without having to give it up or its value to the TD.

Any advice greatly appreciated.
By fatgit
#203152 If you have ownership of the car, and I mean ownership in DVLA terms, then I am pretty sure the IP would also view that as ownership, and therefore as an asset, in relation to the terms of the TD.

Do you have a non-immediate family member who knows of your situation and may be willing to own the car for the next 18 months and simply have you on the insurance? That said, I think this may be against terms and conditions of motor insurance so please check it out.

If there is no way round this - then look at it this way. you've only got another 18 months left of driving around in your banger and then after that you can own a £30k car if you so wish (and can afford it :lol: ).

I've grown quite attached to my banger that is valued at about £400 (18 months ago - so even less now!)
By jade
#203190 Hi there

If you take the car and do the work then your trustee has an interest in it and will value it to raise further funds for your trust deed.

Rubbish I know but thats how it works.

Agree with fg that you hang on till TD finished then do the deal and maybe do the work on the car in the meantime.