can they sue
i currently became laid off and contacted my vehicle finance company explaining i could no longer afford my payments they responded that i need to show proof of my financial situation proving i could not pay they in return responded with a letter of voluntary seizure stating they would auction vehicle then id be responsible for remainder which puts me into a worse situation i refused to sign form my question is the sue or seizure law they stated they were coming to get vehicle so that by law i feel should not allow them to sue me as well and if the company i 1st signed with is bought out from another should i have been able to renegotiate my contract. id prefer not to declare bankruptcy but also would like to know my rights
Posted from: Alberta
Seize or sue, this can be a very confusing issue and one that comes down to the type of finance contract you signed. The seize or sue rule only applies, at least in Alberta, to conditional sales contracts. So if you signed a conditional sale contract then you may not have to worry about being responsible for the shortfall on the vehicle. Now it used to be very rare that a conditional sales contract was used, but that is no longer the case as many lenders have begun using that mechanism to provide financing.
The other part of your comment, the one about being able to renegotiate when the original finance company was bought, it would be nice, but it doesn’t work that way. The contract you signed is what was purchased and so that contract and all the rules and covenants in that contract remain intact.