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used car

My wife and I just traded in our brand new car which we owned for a couple of months for something to try and save on the monthly payments, my question is how will this loan be affected by the fact that we still may file a consumer proposal? we haven`t made a payment yet

Posted from: Ontario

One Response to “used car”

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

Typically with a conssumer proposal there is no impact on your secured loans, so your car loan shouldn’t be impacted in any way. Now technically this can be up to the institution that provides the financing, they often write into the contract that they have the ability to seize the vehicle in certain circumstances (and they may have written a proposal in to the contract), but very rarely does a clause like that become enacted in a proposal as it results in the lending company receiving a great deal less money.

Best thing to do is to contact a local trustee, explain the details surrounding the car and see if there is any need to be concerned. OFten the local trustee will be aware of the standard practices of the major lenders in your area.