Car Purchase – Consumer Proposal
November 29th, 2010 by Questions
Last month I purcahsed car with full financing. If I file for consumer proposal next month, will I still be able to keep my vehicle? I am up to date on all the payments. I \’m concerned that this recent purchase and now proposal will look bad to my creditors and possibly they could say no, I can\’t keep the vehicle. The vehicle is financed with one of the banks where I have Line of Credit of $24,000 outstanding. I\’ve been making all of my minimum payments. I do not want to give up the vehicle and have a budget to show I can afford the payments if a proposal is accepted.
Posted from: Ontario
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November 30, 2010 at 9:25 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
There shouldn’t be any problem with this as the consumer proposal is really designed for the unsecured creditors. The only thing that could potentially be an issue is if you had a large down payment put down on the purchase of the vehicle. If there was a large down payment the creditors would likely be concerned that you used funds that shoulld have gone to them for the purchase of the car, but otherwise I wouldn’t anticipate any difficulties.