Voluntary Surrender of Vehicle

April 30th, 2009 by Questions

Recently, my husband has been laid-off, and as a result we cannot pay our auto loans. I have heard that BC has a sieze or sue policy, in that once the lender siezes the vehicle (voluntary reposession in our case), we are NOT responsible for the deficiency on the loan. Is this true?

Posted from: British Columbia

Questions

One Response to “Voluntary Surrender of Vehicle”


May 01, 2009 at 9:06 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

This is only true in certain cases, but you are right generally in BC, a seller who repossesses a vehicle because the buyer doesn’t make the payments cannot also sue the buyer for any balance owing under the purchase agreement. The seller can either repossess the vehicle or let the purchaser keep the vehicle and sue him or her for payment. In other words, the seller must “seize or sue.”

While this is the general rule there are certain details that can change this general rule, so the best thing to do is to consult with a local trustee.

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