2011-05-12
If the consolidation loan is a lot higher than the value of your car, and if you do a bankruptcy, you can stop making the payments on the loan and the lender will usually seize the car. In many cases, if you want to keep the car in a bankruptcy and continue making the payments on your car loan, you're able to do that. In your case you might not want to do that, given the high amount of the debt. In BC, there is a "seize or sue" law that applies to "consumer goods". If you never used the car for business, it would probably qualify as a "consumer good". That means if you default on your the loan that is against your car, the lender has two choices - they can seize your car, in which case that means that the entire debt against the car is gone. If that was your only debt, you wouldn't need to do a bankruptcy. The other choice the lender has if you default on your payments (and if you're not in bankruptcy) is that they can sue you for the full amount of your loan, but give up their rights to the car (although they might be able to still take the car under a court judgment if the car is worth more than $5,000). If you have any questions, feel free to give me a call or send me an email. Judy Scott - Trustee Surrey, Abbotsford, Maple Ridge, BC 604.949.2113 [email protected]
2025-08-05
Bankruptcy Consumer Proposal
Losing your job can be frustrating and, even more so, managing your financial wellbeing while you’re unemployed. However, you can successfully navigate the situation with the right budgeting tips.
2025-08-04
Since it’s impossible to predict or prevent most medical conditions or emergencies, the best way to handle them is by planning and preparing for them.
2025-08-01
If you are considering filing for Bankruptcy, it is important to understand the impact on your employment and salary.
