Sequestration (Scotland) rules re keeping car.

fire_born

Hi I'm hoping someone can help. Made BR and my car is valued at £3250. The rules in Scotland re valuation are different and £3000 is the limit. I was under the understanding having been advised this by debt charity and reading it a lot online that if you can show that the car is necessary and it's value is £3000 or under, you will likely be able to keep the car, BUT if the car's value is over £3000, then you would be asked to sell it and would get an allowance of £3000 to buy another, OR you can have someone pay the difference. So in my case, if someone paid £250 for me to the AiB, then I could keep the car. That's my understanding.

This is what's happeining, the trustee acting on behalf of the AiB have told me that I can only keep the car if someone pays £3250. Surely that's wrong? Can anyone help, or point me in the direction of an authority on this?

mwarby

How would trustee feel about you selling the car for £3250 and then buying it at £3000, that would have same effect

how was your car valued, I would argue that in light of recent events the used car market will be sluggish and getting the full value is maybe easier said than done 

fire_born

No, what they are in effect saying is that I get to keep nothing. They are saying the whole £3250 goes to the creditor, leaving me wiothout a car even though I nned it for my job. I'm sure that can't be right.

mwarby

https://www.aib.gov.uk/sites/default/files/trustee_notes_for_guidance_-_nov_16_-_updated_feb_20.pdf Would seem to be the trustees manual, it does contain a section on motor vehicles 

it says that if it’s more than £3k it’s an asset which vests with the trustee and they can sell it, I don’t see anything which says they need to give you £3k back

are you likely to be asked to pay disposable income (what in England would be an IPA or IPO). If yes it’s arguable that without a vehicle you won’t be able to do this as you can earn

i would certainly look to challenge the valuation, some valuations aren’t realistic, it very much comes down to condition(webuyanycar for instance knocks off a huge amount for a minor dent)

mwarby

The debtors guide also mentions vehicles, you can only keep if worth less than 3000, and that’s only a maybe allow to keep 

macman

When was the car valued? Covid-19 has hit used values, so if it was valued before March, I'd be amazed if it hasn't dropped by £250 now.
Failing that, go and put a minor dent in it yourself: that'll knock £300 off.