Secured Car Loan

December 24th, 2007 by Questions

Hello. I have a secured car loan with RBC for $10,000, with $6,000 owing. I realize in most cases that a bankruptcy will not affect a secured loan since the bank already has a lien registered. I also have $20,000 line of credit owing to the same bank,. My question is if it`s possible for the bank to reposses my car, even though i have every intentions to continue with my car payments? Also, do I have the right to pay off secured creditors in full with no obligatoions to my unsecured creditors, if i go bankrupt? Sorry for the loaded question, but thank you in advance for your advice! thanks

Questions

One Response to “Secured Car Loan”


December 24, 2007 at 10:40 am, Barton Goth GCO Bankruptcy Trustees said:

Yes it is always possible for teh bank to repossess your car, as it is written into the loan agreement that you signed that upon an “act of default” the bank retains this right and a bankrutpcy is seen as an act of default.

Now in practice most institutions actually prefer for you to keep the vehicle, but techincally it is up to them.

As for your ability to pay secured creditors in full during a bankruptcy without being required to pay any of your unsecured debt, you are correct.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)