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Keeping the cars

I have a problem dealing with my debt and I am probably heading to consumer proposal or bancruptcy. When file for consumer proposal, I don’t want to include the 2 car loans as me and my wife need these cars in order to go to work( I would like to continue the payments for the cars) I have about 50 000 car loan, 36000 line of credit and 33000 credit card debt. Is there an option not to file for the car loans and keep the cars? Thank you!

Posted from: Ontario

One Response to “Keeping the cars”

A licensed trustee said...

Assuming the lenders have properly registered liens against the cars then you have the right to continue to make your car loan payments in order to keep the cars. Seciured debts are excluded from proposals (or bankruptcy).

Which ever trustee you see is going to ask you to consider whether or not it makes sense to keep the cars you currently have – you may want to get something less expensive (and therefore easier to pay for) BEFORE you file your proposal.

Speak to a trustee before you make any decisions – they will help you sort things out.