What about car loans are they cleared through a consumer proposal?

March 13th, 2010 by Questions

We owe the bank approximately $9000 Cdn on a default of a car loan. The car was repossessed and re-sold, this is the amount the bank that issued the loan is now telling us that we owe them still. Can this be included in a proposal? Also, how can we deal with another current car loan (we are in arrears on ) that is at 20% interest if we cannot add this into the proposal?

Posted from: Alberta


One Response to “What about car loans are they cleared through a consumer proposal?”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Yes, this shortfall from the repossessed vehicle can be included in a consumer proposal. As soon as the secured creditor in question has repossessed the vehicle, they loose their status as secured and as an unsecured creditor. The consumer proposal is designed to deal with these types of unsecured creditor in a fair and orderly fashion.

As such you are probably best to contact a local trustee and they will help you determine what type of offer will be required to get your creditors on board.

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