Reposession then proposal?
I am trying to find the interest free way to pay off my debts. I owe close to $30,000. Most of which is a car loan that I have already stoped paying. The vehicle was in an accident that will not be covered through insurance. The car is worth more than the damage done to it. But the debt owed on the car is more than the car was worth before the accident. Is the car able to be reposossed in its current state? If so could I get a consumer proposal on the remaining amount that is owed?
Posted from: Alberta
Yes, the car can be repossessed regardless of the state it is in. Although, this may make it a little more difficult to get a consumer proposal passed, especially if this loan makes up the majority of your debt. Remember that in a proposal we need the cooperation from the majority of your creditors. So if the shortfall from this car loan is significant you may have to have their cooperation. As a result they may demand a larger percentage recovery as a result of of the damage to the vehicle.