What Happens To My Car Loan In A Bankruptcy

Hello, Bankruptcy does not interfere with secured creditors.  If you have a loan that is secured by your car you can continue making this payment.  This assumes that you are not behind in the payments.  If you are behind in the payments, the secured creditor may choose to enforce their security by taking the car back, however, if you are not behind in the payments you should be able to continue on with the loan. On a related note, in Manitoba there is a $3,000 equity exemption for a vehicle provided you are working.  So for example, if you owned a car free and clear and it was worth $4,000 there would be $1,000 in equity for the bankruptcy estate.   The Trustee could try to sell the car to get the $1,000 in equity however a more likely scenario is that you could buy back the equity in the car by way of a monthly payment. Brad Milne, CIRP Trustee in Bankruptcy Brandon, Manitoba