Generally there are two actions, one for repossessions under sections 8 or 21 of the Housing ac, and a CCT action for arrears etc
In regard to the sale to you of the car..
When an enforcement warrant arrives at the HCEO office and is acknowledged by them, all goods that are the property of the debtor become "bound" to the enforcement power and the bailiff enforcing under it.
If you had acquired the car in good faith and for financial consideration, you would also acquire good title, and if this is agreed the bailiff cannot take your car. Whether or not the bailiff agrees, does not effect his power to enforce otherwise..
If he does disagree and remove goods. It just means that a court may either believe your case or that of the bailiffs.
On auction( sale) which can occur in either case, if the bailiff is found to be wrong, you can claim goods or money back, from sale or otherwise.
Generally if the bailiff sees there are reasonable grounds to believe you, he will just withdraw.
The way that Proceeds of sale are distributed are in Schedule 12 Part 51of the TCE 2007.
As said, at the value you quote none of this should happen, this is because the fees required by the EA , auctioneer etc. would not be covered by the proceeds of sale.
Don't touch them owe me £500 since January 2019 make excuse after excuse. Seem they always have software problems sending money out. Keep saying they will call back or email nothing been chasing it now for 6 mths the phone staff always have the same banter we will chase it up and get back to you then nothing!