November 29th, 2012 by Questions
When you file for bankruptcy and you have a vehicle or a boat for example, and there is still money owing on it, but you are behind in the payments, who gets or repos the boat/car? Does it go back to whoever the money is owed to, or is it sold and the money goes towards your entire bankruptcy?
Posted from: British Columbia
One Response to “Bankruptcy”
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November 29, 2012 at 9:31 am, A licensed trustee said:
Whether or not anyone may seize the vehicle or boat depends on whether or not their are any liens registered against the vehicle or boat. For example, lets say you borrowed $25,000 from a bank to buy a car and the bank put a lien on the car (a lien means they’ve registered a note against the vehicle that allows them to seize the vehilce if you don’t pay). If the bank fails to regostered the lien and you file for bankruptcy then they probably can’t come and take your car – it this case, your trustee may seize it instead.
This is something you need to discuss with your trustee BEFORE you file.