FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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Do surrender or not?

I have a vehicle that I leased to own (due to poor credit at the time) and I’m into year 4 of the 5 year lease. The vehicle I have is very very very expensive to fix and I am two payments behind. I cannot afford the payments, they are too high and can’t be refinanced, and I can’t afford the $2000 in repairs either.

Is it better for me to surrender the vehicle or let them repo it? I understand that I will owe more money to them. In a worse case scenario, if I declare bankruptcy will they allow it?

Also, I have the opportunity to get a very very cheap and cheap to run vehicle from a friend. In BC if I do declare bankruptcy, if I have a $700 vehicle, will that be seized as well?

Thanks in advance for your help

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One Response to “Do surrender or not?”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

Typically surrendering the vehicle is going to leave you on the hook for fewer legal and repossession costs. As for a bankruptcy, if there is a shortfall and you file for bankruptcy that will be cleared and as long as your vehicle is less than the exemption limit allowable in your province you should have no problem. For more information on the provincial exemptions the easiest thing to do is to contact a licensed trustee in your area and he will be able to advise you as to provincial specifics.