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unregistered car lien and consumer proposal

I am wondering what to do about an unregistered car lien. I have a loan through the bank, but they did not register a lien that I can find.

I am worried what will happen if I file for a proposal. If the loan is considered unsecured then it will have to be included when I file and I am concered that the bank will try to register security after I file, even though it won`t be considered valid, so they can take the vehicle. (I have tried to get a new leased vehicle but I was not approved due to high debt to income ratio.)

I have been given some questionable advice to call the bank and tell them that I will be filing a proposal, and ask them to register security before I file so that the loan will be considered secured.

That doesn`t make me very comfortable, and I don`t think that is a good way to go.

Any advice is greatly appreciated.

Posted from: Alberta

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One Response to “unregistered car lien and consumer proposal”

Barton Goth – Goth & Company Inc. – Bankruptcy Trustees said...

There is nothing wrong with contacting the bank in an attempt to determine if they are secured or not, but the easiest way is to simply file the proposal with it listed as an asset and an unsecured debt. The bank will not have the right to register their security after the date of the proposal, and will only have access to the monies within the proposal. This will mean you must offer a little more to the creditors than if the car was registered, but would be the easiest way to go about it. The key thing is you must pull a copy of the of the registration to confirm that nothing has been registered since the search was last done.