Question Asked...
I entered into a voluntary repossession agreement with the leasing company of my vehicle. I was told by the leasor that the vehicle would be accepted back, it would be sold, and then I could be liable for any loss. Is this true? In BC the law is sieze or sue is it not? If it becomes the case, is bankruptcy an option? I am unemployed on EI benefits.
Posted from: British Columbia
Firstly, seize or sue legislation applies only to Conditional Sales Contract’s and not your standard lease of finance agreement. Additionally, if you voluntarily return the vehicle then even if we are dealing with a Conditional Sales Contract the lender retains the right to take the vehicle and still sell it. So you are likely still liable for the shortfall and may have to look into bankruptcy in more depth. For reference, a bankruptcy would be an option, irrespective of employment status.