If I declare bankruptcy can I keep my mortgage and vehicle?

If I declare bankruptcy will I still be able to keep my mortgage and vehicle debts intact as I use my vehicle to get to work.

Posted from: Alberta

One Response to “If I declare bankruptcy can I keep my mortgage and vehicle?”

Desmond West-Chow, CIRP said...

This is a very good question and one that many people ask. Generally, in Alberta most people are able to keep their vehicles and their cars, but there are exceptions. As long as you are up to date on any loans against the house or the cars, have less equity than allowed under the Civil Enforcement Act of Alberta (for a house this is $40,000 divided by your percentage ownership and for a vehicle it is a maximum of $5,000 per individual debtor) then you likely won’t have any issues. However, there a number of specifics that need to be considered that can be very dependent on the situation. So I would recommend you contact a local trustee, or call me directly at 1-877-554-2055, so that we can properly review your situation to make sure you know what will happen. The other thing to keep in mind is that if you have more equity in either the house or the vehicle a consumer proposal is a good way to avoid any of these issues.