Car finance arrears are different from most debts, because on Hire Purchase (HP) or PCP the car isn’t legally yours until it’s paid off. That means the honest position matters: including the finance in a debt solution usually means giving the car back. Here’s a clear look at your options.
The solutions we advise on are debt solutions, not loans; some are forms of insolvency, are recorded on a public register and will affect your credit rating. Your initial advice is free and there’s no obligation; if you go ahead, fees apply and are shown to you in full first. We’re a commercial service — free, independent debt advice is also available from MoneyHelper and the Scottish Government.
Most car finance in the UK is Hire Purchase (HP) or Personal Contract Purchase (PCP). Under both, the finance company owns the car until the agreement is settled — so the debt is effectively secured against the vehicle. That changes what a debt solution can and can’t do.
If you want to keep the car, the finance generally has to be kept up and paid outside any solution — and a Debt Arrangement Scheme or Protected Trust Deed can still help by dealing with your other, unsecured debts, freeing up income to maintain the car payments. If the car is unaffordable, the finance can be included, but that normally means handing the car back, with any shortfall then treated as an unsecured debt.
We won’t pretend otherwise — anyone promising you keep the car and write off the finance isn’t being straight with you. We’ll explain exactly how it works for your agreement and point you to free, impartial advice.
Whether you keep the car or not, we can help you deal with the rest of your debts and get back in control.
Maintain the car finance outside your solution, while a DAS or Trust Deed deals with your unsecured debts and frees up income to keep the payments going.
If the car is unaffordable, the finance can be included; the car is returned and any shortfall becomes an unsecured debt that can be dealt with in your solution.
Either way, your unsecured debts — cards, loans, overdrafts — are brought into one affordable monthly payment.
Free, confidential advice with no obligation. We’ll give you the honest picture.
See if you qualify →For the right person, these solutions offer real relief. Here are some of the main advantages.
Bring your unsecured debts together into a single monthly payment based on what you can realistically afford.
We deal with your creditors directly, so you no longer have to liaise with them yourself.
Once your solution is in place, interest and charges on the debts included are frozen so the balance stops growing.
Dealing with Scottish debt is all we do, so the advice you get is tailored to the solutions available where you live.
This is a serious step and isn’t right for everyone. We’ll fully explain the implications and check any solution is affordable, achievable and suitable — another option, or free impartial advice, may be better for you.
Because the car isn’t yours until the finance is paid, including the finance in a debt solution normally means returning the car. It can’t be written off while you keep the vehicle — we’ll always be clear about this.
A Trust Deed or DAS affects your credit rating and can make obtaining credit harder for a period. If you’re already behind, your rating is likely affected already.
A Protected Trust Deed is recorded on the public Register of Insolvencies; a DAS on the DAS Register — both searchable.
Where debt can be written off, how much depends on your circumstances and creditor agreement. Nothing is promised.
With priority debts, enforcement can move quickly. The sooner you get advice, the more options you’ll have.
No single solution is right for everyone. We’ll always check whether another route would serve you better first.
If the following sounds like you, it’s worth free, straight advice on your car finance and your wider debts. There are other factors we’ll assess, such as your property status and income.
Get an honest picture of what a Scottish debt solution can — and can’t — do about your car finance.
Check if you qualify Free initial advice · No obligation · Fees apply only if you proceed and are shown in full firstYour initial advice is free and there’s no obligation. Trust-Deeds.co.uk is a trading style of My Debt Plan Ltd — a commercial, profit-seeking service, paid for the debt solution you enter into.
If you go ahead with a Protected Trust Deed, your trustee is paid a fixed administration fee plus a further fee based on a percentage of the funds collected during the Trust Deed. These fees are paid from the monthly payments you make, before money is distributed to your creditors — so there is no separate upfront fee. On a Debt Arrangement Scheme, a fee is taken from your monthly payment to cover administering and distributing it to your creditors. Whichever route suits you, all fees are explained and disclosed to you in full before you sign anything.
Whatever you decide about the car, these routes can deal with your unsecured debts. We’ll explain the advantages, disadvantages and risks of each.
A Scottish alternative to bankruptcy for unsecured debts over £5,000. One affordable monthly payment, typically over around four years, after which qualifying unsecured debt you can’t afford is written off (subject to creditor agreement, not guaranteed). A form of insolvency recorded on a public register.
Learn about Trust Deeds →A Scottish Government scheme to repay your debts in full through one affordable payment, with interest and charges frozen and your home and car protected as long as you keep up the payments. It will still affect your credit rating.
Learn about DAS →Find out in minutes what a Scottish debt solution can and can’t do about your car finance. It’s free, confidential and there’s no obligation.
Answer a few quick questions about your situation and a debt advisor at My Debt Plan Ltd will be in touch to talk through your options. It’s free, confidential and there’s no obligation.
See if you qualify →Prefer to speak to someone? Call us on
0161 464 0870Mon–Fri 9am–5pm · Private & confidential, no obligation
Free, independent debt advice is also available from MoneyHelper, StepChange, National Debtline or Citizens Advice Scotland.
How cars are treated when you deal with the rest of your debts.
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