Secured creditor.

December 22nd, 2005 by Questions

I have a 97 Aerostar dealer financed. I owe $9,000. on it It is worth less than that. Does the dealer automatically take it back when I file for bankruptcy or can I keep the car and continue payments. Assuming it goes back to the dealer is there any way I can purchase a car in the month prior to declaring bankrupt or any time between then and my discharge and keep it or am I forced to do without a car until after my discharge? This is in BC.

Questions

One Response to “Secured creditor.”



, Barton Goth, GCO Inc. Bankruptcy Trustees said:

No the dealer doesn’t automatically take back the car. In most instances, as long as you are up to date with your payments, the lenders prefer you keep the car as they will make more if the loan is paid in full than if they have to seize and sell the vehicle. As for purchasing a car during a bankruptcy, this is definitely a possibility, there are a number of lenders in each area that are often willing to finance in these types of circumstances, but you can expect to pay higher interest than is typically advertised. Prior to making any decisions I recommend you talk to licensed trustee who will be able to give you a better idea what to expect.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)