Car Lien after Consumer Proposal
March 30th, 2011 by Questions
After the successful completion of a consumer proposal, what happens to a car with a lien on it? The car in this case was used to secure a loan from one of the creditors before the proposal. I understand that the lien would still be in effect (no protection from the proposal). If I am unable to sell the car with a lien on it & just give it to the creditor, could this repayment obligate me to further payment to them by opening up the statute of limitations, or does the Consumer Proposal protect me from owing them anything but the car (worth much less than the lien amount)?
Posted from: Ontario
One Response to “Car Lien after Consumer Proposal”
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March 30, 2011 at 6:24 am, A licensed trustee said:
If you continued to make payments towards the car laon during the proposal then the debt was excluded from your proposal and the only way to have the line removed is to ask the bank (or finance company) to lift it 0 they will once the acr has been paid for.
If you stopped making payments when you filed the proposal and the lender submitted a claim and received payments from your proposal then you should contact the trustee that handled your proposal and ask them to send a letter to the lien holder requiring them to remove the lien.