Free Consultation

payout auto loan

I want to file a consumer proposal as I am swimming in debt. Problem is that I have six months worth of car payment with the bank that is alsomy biggest creditor. A friend as offered to payout the loan and I would then make the same monthly payment to her instead of to the bank. Would this be ok? Alternate possiblity is to get see if a mom would payout my loan as a xmas gift…would that be ok? my preference is to take the loan from my friend.

The car is a secured asset as it has a lien on it…and my friend would draw up official paper giving her title to the vehicle if i don’t repay the loan.

Posted from: Ontario

One Response to “payout auto loan”

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

I don’t see the problem with the situation you have outlined. I regularly have people file a consumer proposal with an institution they also have a secured car loan with. This normally has no impact on their willingness to cooperate with the filing of a consumer proposal.

If I were you I wouldn’t worry about trying to move that car loan anywhere, file the proposal as it stands. The lender can’t legally call a car loan due to the filing of a consumer proposal, and in my opinion you shouldn’t have any difficulties.