Can I let a car go in a proposal

April 12th, 2011 by Questions

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.

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