car loan and bankruptcy

August 6th, 2008 by Questions

Hi, I am student living in Ontario with a car loan that I still owe 4 years of payments on it. I can no longer afford this car along with my other debts. If I file bankruptcy and return the car will bankruptcy take care of the car loan. I got the car at a dealer who found a finacing company for me?

Posted from: Ontario


One Response to “car loan and bankruptcy”

, Barton Goth - Goth & Company Inc. - Bankruptcy Trustees said:

In this type of instance timing is essential. As long as you stop making payments and notify the financer to come and pick up the vehicle prior to filing a bankruptcy then the bankruptcy will release you from this debt. However, if you surrender the vehicle after the bankruptcy has been filed then you would be responsible for the full balance of the remaining loan.

The best thing to do is to contact a local trustee and they will help you understand the order to follow so that you can be cleared from the shortfall as well.

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