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Car Loan

Ok heres my situation. Last year I bought a car and consolidated some bills right in with the car loan. Car was bought for $8000 and the loan in total was around $28,000 over 5 years. The loan now stands at approx $23,000 and the security on the loan is the $8000 car which of course is no longer worth the $8000. Can this loan be included in my bankruptcy? Will I lose this vehicle or can I make arrangements to get a seperate loan for the vehicle. I need it to travel to work each day. Thanks

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One Response to “Car Loan”

Barton Goth GCO Bankruptcy Trustees said...

This is typically not a problem as long as you are currently up to date on the car loan and can afford to make the monthly payments. However, there is a caveat, this is the typical scenario but it is entirely up to the secured lender.

Technically a secured loan operates outside of the Bankruptcy and Insolvency Act, but the lender retains the right to seize the property simply as a result of the Bankruptcy. While this is not normal practice for most institutions, it is technically possible.

My recommendation would be to contact a local trustee local trustee and confirm how the lender in questions typicaly acts in yoru area, but chances are unless you dealing with the Royal Bank it isn’t abnormal.