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Danielle138
New Member

4 Posts

Posted - 04 October 2018 :  15:47:12  Show Profile  Reply with Quote
Please help! I am 18 months into my trust deed and only pay 120 a month as my debts were relatively small. I had a car on finance which was valued around 3000 even though I had more than this outstanding on the car. Anyway, my car was written off last week so question 1 is: does the insurance payment go towards paying the finance or does it go to the finance company?

Issue number 2. My dad was looking to buy a car for when he is home (he works overseas and hiring a car is so expensive) so said that he would buy a car and make me registered keeper as I'll be using it more than him so I'll be responsible for tax etc. Long story short for convenience he transferred me the money to pay for his car (value approx 5495) as he was abroad. I paid for the car using the money he transferred Not even thinking about the trust deed as I think i was still in shock about the car accident and also just relieved that I would be able to have transport again. Now I am seriously panicking that my trustee will see this as my asset and make me sell the car! I'm so worried, I can't eat can't sleep I can't concentrate on anything else for worrying. My dad has signed paper work stating he is the owner of the car as his money paid for it, it wasnt a gift and detailing what happened. Please help I'm so so worried.

D coutts

Danielle138
New Member

4 Posts

Posted - 04 October 2018 :  15:56:32  Show Profile  Reply with Quote
Just to add. My dad would be furious, he wasn't aware I was in a trust deed and he will be absolutely devastated losing all of that money because of me.

D coutts
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Captain Sensible
Regular Contributor

24 Posts

Posted - 04 October 2018 :  16:14:55  Show Profile  Reply with Quote
Hi Danielle138

If you make a car insurance claim, any payout will be set off against the finance outstanding on the car. If there's not enough of a payout to clear the finance, the shortfall will be included in your trust deed.

If your dad has transferred the money to buy a car to you, and signed a statement of his ownership of the car, you should be fine. Might be worth letting your Trustee know about these occurrences though. Normally if you can show you don't own the car, there's no problem. One issue that may arise is that your Trustee wants to look at your contribution, as presumably you won't be paying whatever your monthly payment was for your car finance.
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Danielle138
New Member

4 Posts

Posted - 04 October 2018 :  16:18:13  Show Profile  Reply with Quote
Thanks so much for your advice. It is really appreciated!

As for the finance, I thought that because the car wasn't included in the initial trust deed then I would have to continue payments to the lender?
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TDA (Debt Adviser)
Trust Deed Expert



12572 Posts

Posted - 04 October 2018 :  16:39:20  Show Profile  Reply with Quote
Hi Danielle,

Any remaining debt from this agreement (which I presume existed before the trust deed started) should become a debt within your trust deed.

You'll need to let your trustee know about this so they can handle it.

As mentioned already, your monthly payment into the trust deed may be reviewed if you don't have the car finance expense any longer.

It's probably best to get the subject of the new car out in the open as well. Hopefully they'll understand the circumstances and you can demonstrate that you aren't the owner.




Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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Danielle138
New Member

4 Posts

Posted - 04 October 2018 :  17:25:10  Show Profile  Reply with Quote
Would it be best to wait until I hear from the insurance what the insurance claim is worth before I discuss this with them?

Also, with regard to my dads car is it likely that they will accept it's his? If not would they make me sell it?

D coutts
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Kevin Mapstone
Trust Deed Expert



3597 Posts

Posted - 05 October 2018 :  09:27:05  Show Profile  Reply with Quote
I suppose that depends upon how long you expect it to take for the insurance company to process the claim. Probably best to let your trustee know now if it may take a while.

I don't see why they shouldn't accept it is his if you can show evidence of this.

Recommended Partner & Trust Deed Expert - Ask me for help setting up a Scottish Trust Deed    
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Captain Sensible
Regular Contributor

24 Posts

Posted - 05 October 2018 :  18:40:21  Show Profile  Reply with Quote
Hi Danielle

As TDA and Kevin have said, best to let your Trustee know about things as soon as possible. Openness and honesty is always the best policy.

Let us know how things go.
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