Can I let a car go in a proposal

I have about 30k in unsecrured debt plus a car loan. Can I stop making payments on the car and let it go then put the remaining balance in a proposal.

Posted from: New Brunswick

One Response to “Can I let a car go in a proposal”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

Yes, it is very common for someone to let the car be seized and then put the shortfall into a consumer proposal. The only thing you have to be careful about is timing. You have to contact the bank and tell them then need to seize the vehicle (and I alwasy suggest both verbally and in writting), before the actual proposal is filed. You also want to make sure you have communicated that this is happening to your trustee.