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rebeccagettingdebtfree
Contributor

14 Posts

Posted - 04 June 2019 :  13:33:07  Show Profile  Reply with Quote
I am really struggling to keep a car that I have on a secured loan and couldnt be included with my trust deed.

Can you file for bankcrupty if you are in the trust deed? I cannot see another way out of this and I have no quality of life even with my "allowances"

Went into the trust deed March 2019

<3 counting down the days until I am debt free.

David Tannock
Trust Deed Expert



2197 Posts

Posted - 04 June 2019 :  14:34:10  Show Profile  Reply with Quote
Hi rebeccagettingdebtfree,

Whilst in the Trust Deed you canít apply for your own Sequestration (Bankruptcy). You would need your Trustee to do this for you or for them to release you from the Trust Deed (but without discharging you from the debts) and then you can apply for your own Sequestration.

To apply for your own Sequestration you need to have been given advice from an approved advisor (IP, citizens advice or local authority advisor) and for them to provide a Certificate for Sequestration.

If you are unable to afford the payments for the car you can organise for this to go back to the finance company and then any shortfall balance due to them could be included as a debt into your Trust Deed.

Are you just finding the Trust Deed too much to manage? I see you only went into this in March 2019 so a couple of months ago. If you hand back the car would this free up some money for you to be able to afford the Trust Deed?

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Kevin Mapstone
Trust Deed Expert



3767 Posts

Posted - 04 June 2019 :  15:12:10  Show Profile  Reply with Quote
There is no guarantee you would be able to keep the car in a bankruptcy anyway, so maybe it is worth considering whether you can make alternative arrangements and keep the trust deed going? How much do you pay for the car and how long do you have left?

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rebeccagettingdebtfree
Contributor

14 Posts

Posted - 04 June 2019 :  16:05:44  Show Profile  Reply with Quote
I pay £184 a month and It will be 2 years in September I have had the car. I just feel I have no quality of life, between that the petrol, insurance ... oh its just not worth it anymore. I am also at risk of losing my job too (Another post) And even if I got something else I am worried I wouldnt be making the same amount I am right now. The car is just , not worth it anymore.

So If I handed back the car and the remaining balance can that be included in my current trust deed? Would that extend the trust deed time. Sorry I didnt realise this was an option and it might be my best bet.. thanks for all the advice so far.


Went into the trust deed March 2019

<3 counting down the days until I am debt free.
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David Tannock
Trust Deed Expert



2197 Posts

Posted - 04 June 2019 :  16:22:46  Show Profile  Reply with Quote
Iíd have a good look at the agreement to see if itís possible to hand the car back early. Some agreements if you have paid more than a certain amount then you can voluntary terminate the agreement and return the vehicle without owing any money as long as the car is in reasonable condition.

If you canít voluntary terminate the agreement if you were to stop payments and they took the car back the shortfall / balance on the finance could be included as a debt in the Trust Deed. If that happened then you could be expected to increase your payments to the Trust Deed to compensate for the extra debt and to ensure that the creditors at the outset receive the amount which they agreed to.

Iíd suggest speaking with the finance company about handing the car back to see what the options are and also to your Trustee. Once you have done this you will have a better understanding of it all. The positive thing is that you donít need to feel trapped by the car. There is a solution to dealing with that.

Prioritising quality of life is important and itís always something I encourage people to do when looking at their budget and options.

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rebeccagettingdebtfree
Contributor

14 Posts

Posted - 04 June 2019 :  16:31:20  Show Profile  Reply with Quote
David thank you so much for this advice - I will post with an update shortly many thanks x

Went into the trust deed March 2019

<3 counting down the days until I am debt free.
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David Tannock
Trust Deed Expert



2197 Posts

Posted - 04 June 2019 :  17:21:08  Show Profile  Reply with Quote
You are welcome. I'm sure you will get it all sorted out.

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rebeccagettingdebtfree
Contributor

14 Posts

Posted - 06 June 2019 :  09:36:04  Show Profile  Reply with Quote
Hi David, So I have been looking at my options. My car is secured loan on finance. The trust deed origionally said we couldnt incude it thats ifne, If I sold the car back to the dealer and usually there would still be an outstanding balance which I know I will not be able to afford. Could I then speak to trust deed to include that in my debts? I think this is only option - the car between petrol, tax , insurance and the fianance of £184 is just not worth it anymore ,thanks

Went into the trust deed March 2019

<3 counting down the days until I am debt free.
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David Tannock
Trust Deed Expert



2197 Posts

Posted - 06 June 2019 :  11:28:28  Show Profile  Reply with Quote
Hi rebeccagettingdebtfree,

If you returned the vehicle and it was sold then the shortfall balance that would be owed could be included as a debt into your Trust Deed.

This could result in your payment to the Trust Deed being increased to compensate for the increase in debt but also because your expenditure would change and you could potentially afford more.

Iíd speak with your Trustee about it all for them to clarify and confirm things.

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Kevin Mapstone
Trust Deed Expert



3767 Posts

Posted - 06 June 2019 :  11:47:35  Show Profile  Reply with Quote
As the car finance was an obligation that existed prior to the date of signing of the Trust Deed then it is automatically included. If you choose to stop paying and surrender the car then the lender would have to make a claim for the shortfall in your Trust Deed - they couldn't legally seek payment from you directly for that debt.

By adding this new claim in to your Trust Deed there may be a reduction in the return for other creditors, which is why your Trustee may insist that you pay slightly longer instead and therefore ensure all creditors are still getting what was originally estimated.

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rebeccagettingdebtfree
Contributor

14 Posts

Posted - 06 June 2019 :  11:55:33  Show Profile  Reply with Quote
Thanks again for all your help and advice so far! Feeling so nervous as I dont handle change well so will see what happens and keep you all posted.

Went into the trust deed March 2019

<3 counting down the days until I am debt free.
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David Tannock
Trust Deed Expert



2197 Posts

Posted - 06 June 2019 :  12:00:42  Show Profile  Reply with Quote
Do any of us handle change well? I know I struggle with that too so you are not alone.

It will work out fine Iím sure so donít put off reaching out to your Trustee for some advice and clarification.

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rebeccagettingdebtfree
Contributor

14 Posts

Posted - 13 June 2019 :  11:27:24  Show Profile  Reply with Quote
Hi all just wanted to update and some more advice.


It has been confirmed my hours will be fallping due to not being able to fit it around school. I will lose my working tax and be going onto income support.

I just cannot justify having the car anymore now my income will be so low and even the trust deed payment is a worry.

I am seriously considering to speak to my trust deed about filing me for bankcruptcy. I feel this is the option I need to go down now due to my circumstances will be changing so much and it is already tough I cannot imagine how worse it will be when I lose the hours.

Any advice would be appreciated and can trust deeds agree to make me bankcrupt chapter 7?

Went into the trust deed March 2019

<3 counting down the days until I am debt free.
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TDA (Debt Adviser)
Trust Deed Expert



13031 Posts

Posted - 13 June 2019 :  11:38:56  Show Profile  Reply with Quote
Hi Rebecca,

If you have more detail now it would be sensible to get in touch with your trustee to discuss the way forwards.

If your trustee concludes that the trust deed will no longer be viable then a change to bankruptcy may well be possible.

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rebeccagettingdebtfree
Contributor

14 Posts

Posted - 13 June 2019 :  12:13:22  Show Profile  Reply with Quote
Thanks a lot. Im just so scared about it all but what to do! many thanks x

Went into the trust deed March 2019

<3 counting down the days until I am debt free.
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David Tannock
Trust Deed Expert



2197 Posts

Posted - 14 June 2019 :  12:01:59  Show Profile  Reply with Quote
Hi Rebecca,

Try not to get too stressed about things. If you cannot afford a suitable payment towards the Trust Deed the likelihood is it will fail and Bankruptcy will be a good option.

The Trustee will release you from the Trust Deed and you could then apply for your own Sequestration (Bankruptcy). To do this you would need to seek advice from a qualified money advisor and this could be your local authority or citizens advice.

The best thing you can do is reach out to your Trustee to speak with them and they will be able to clarify everything for you. This should hopefully stop you being worried and scared.

Please let us know how you get on.

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