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Fifitrixy77
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2 Posts

Posted - 19 May 2014 :  16:00:31  Show Profile  Reply with Quote
My husband and I are both in trust deeds his being just a few months. Long story short we are gettin his car repossessed on hp and I just wondered once they try and auction it and if there's a short fall for say 5 grand can they peruse him for this? I have a friend who was in a similar situation but she's sequestrated and they never presumed her for it? We certainly are not in a position to pay that back anytime soon. I wondered if it was different in a Td?

TDA (Debt Adviser)
Trust Deed Expert



13361 Posts

Posted - 19 May 2014 :  16:22:43  Show Profile  Reply with Quote
Welcome the forum Fifitrixy77.

If the HP agreement began before the trust deed I'd assume that any shortfall debt (after it's sold) would fall into the arrangement.

Best to run it all by his trustee to be sure though.

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Fifitrixy77
Just Joined

2 Posts

Posted - 19 May 2014 :  16:33:42  Show Profile  Reply with Quote
Thanks for quick reply. Yeah it did and it's probably worth mentioning just so no one else makes the same mistake but when we got the car we presumed it was finance as it was never explained to us it was hp and up to last week we didn't even know what hp was. We also never read the document at the time which would have stated this so completely our fault. Anyway we thought it would be incorporated into his trust and I wasn't there when he handed over all the documents of his creditors or would have realised the car wasn't there and then would have discovered it was actually hp which would have been taken into consideration re contributions. We can't afford the trust deed payments and hp so are having to get it repossessed. Lesson learned in making sure firstly we read things in future and secondly when it comes to cars make sure it is clear to everyone exactly how it's financed before entering a Td and that everything is documented
regarding the car.
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David Tannock
Trust Deed Expert



2383 Posts

Posted - 21 May 2014 :  08:36:29  Show Profile  Reply with Quote
Fifitrixy77,

It's actually a lot more common than you think when it comes to car finance and hire purchase and people not being aware of the difference. It's one of the first questions I'll ask when someone has a car and 9 times out of 10 they don't know what type of finance it is.

If you have discussed this up front with your Trustee then I'm sure there won't be any problems including this into the Trust Deed. As it's a debt that was taken out prior to the Trust Deed then the shortfall following the sale can be included. You will probably receive some threatening letters from the finance company about the shortfall but just pass these to your Trustee to deal with.

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Kevin Mapstone
Trust Deed Expert



3851 Posts

Posted - 21 May 2014 :  14:14:47  Show Profile  Reply with Quote
I'm a bit surprised that your trustee, or their representative, never asked you about this beforehand. I always insist on seeing the loan/hp documents first because, as David says, a lot of the time people get the two confused. If this was identified in advance then you could have factored this into the equation when assessing your options.

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