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Voluntary Vehicle Surrender

Hi, my husband recently lost his job and I am on maternity leave as we have just had a baby. With the added expense of our new child and my husbands lost income we decided to do a voluntary surrender of our vehicle. When I spoke with the bank that we had our loan with they assured me that under Alberta law they can `seize or sue` but not both. So they took back our car and told me I dont owe anything. About a week after the car was picked up I received a letter that confused me because to me it seems like the asset department is telling me that once the vehicle sells we may be responsible for any outstanding balance.

Is this true, I was under the impression we would not owe a single penny once the car was out of our possesion.
Please help, I am so confused.

Posted from: Alberta

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One Response to “Voluntary Vehicle Surrender”

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

In Alberta we do have the seize or sue legislation, but this is only applicable to conditional sales contracts. So it really depends on the type of contract that was utilized and potentially the wording of that original contract. If you financed the vehicle under some other type of financial contract then this seize or sue legislation doesn’t apply.