Repossession Of Vehicle By Creditor

2008-12-09

Hi, Trevor. The repossession of a vehicle or other asset by a creditor doesn't automatically put you into bankruptcy. In some cases, the repossession can leave you with a debt to that creditor (if they sell or dispose of the vehicle and don't recover enough to pay what you owe them on the loan or lease). Normally they will try to collect that from you for a while. If you can't pay the debt, bankruptcy is one of the options you can look at. However, there's something else you might be interested in as well. (Please note that this applies in BC and may not apply in other provinces.) In some situations, if a secured creditor repossesses or seizes a vehicle (or other goods) from you, they may not be able to ask you to pay any more money, even if the value of the vehicle is less than what you owe. i.e., when they seize the vehicle, that extinguishes your debt in full. This is dealt with in s. 67 of the BC Personal Property Security Act. To qualify for this protection, the goods have to be “consumer goods” (i.e., goods that are used or acquired primarily for personal, family or household purposes). Judy Scott Vancouver - Port Moody - Abbotsford 604-949-2100   -   866-568-1335 [email protected]

Latest Blog Posts

2025-05-12

Facing uncertainty: How to navigate insolvency risk before it’s too late

Mario Mainella

Economic uncertainty is pushing more Canadian businesses towards insolvency. Learn the early warning signs and what leaders can do now to stay ahead.

Read More

2025-05-07

How to be a responsible credit card user

Leah Drewcock

Credit cards are a popular and convenient form of credit that can be a very useful tool.

Read More

2025-04-25

Understanding debt collection in Canada: Protecting your financial health

Olivier Boyd

Debt collection can be a daunting experience for many Canadians. Navigating the process alongside MNP’s team of experts can help you better understand how it will impact your credit score and gain the knowledge needed to maintain your financial health well into the future. 

Read More

Consultation icon