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Buying Car from Trustee

My vehicle which I own outright is worth more than the exemption limits. I understand that one possibility is to make payments to the trustee over the bankruptcy period to purchase the fair market value of the car equity. If relatives were able to finance the purchase of the equity with payment terms to be worked out between us, would that also be acceptable, legal etc. ?

Posted from: Manitoba

One Response to “Buying Car from Trustee”

A licensed trustee said...

Certainly – the trustee is required to collect an amount equal to excess value of your car (over the exemption). If you have a family member willing to provide the money and allow you to repay that over time the trustee will consent. Make sure you work all of this out BEFORE you file – that way there can’t be any surprises…