Vehicle loan ?

January 3rd, 2010 by Questions

Hi, I have a vehicle that I owe more on the loan for it than the actual vehicle. My parent co-signed for the loan. I simply cannot afford the vehicle anymore and am considering having it repossessed. I have heard that in bc there is a seize or sue policy. In either one of these cases, will this effect my parents credit?

Posted from: British Columbia


One Response to “Vehicle loan ?”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Anytime you do not live up to the obligations under the vehicle contract then it damages the credit of anyone who has signed on the loan documents (i.e. both you and your parents).

In terms of the seize or sue legislation, the key to this is if you voluntarily surrender the vehicle the creditor retains the rights to both seize AND sue. Although regardless, in a situation like this chances are the creditor would sue not seize as they can sue both you and your parents so depending on your parents financial circumstances they may have a much better liklihood of recouping all the monies owed.

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