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Car woes…

So I�m looking at turning over my truck to the financer. Since I can’t afford to take taxi’s ($40 one way) to work and require a vehicle for work, my father is piecing together a 1997 clunker to give me as I am flat broke and need a way to work. The van is not worth a whole lot; in fact, I think that it neighbors the $1500 mark as has about 350,000 clicks on it.

The problem lies herein:

In Nova Scotia you are held responsible for the short fall on your car loan; in my case about $10,000. If I am not able to work out an arrangement to make affordable payments on this shortfall, I am looking at going bankrupt. Will I lose this Van and my only way to work… ( PS I am a manager at a local retail outlet that needs transportation for bank deposits and to pick up supplies for the store- my wife is on call nights and we live about 25 minutes highway driving from her employer and this is a shared vehicle)

2) Can the shortfall on a secure loan be included in a consumer proposal?

If I read the information right I can keep a car worth 6,500 or less in NS if i need it for work or 3,000 if its not needed…

One Response to “Car woes…”

A licensed trustee said...

Let me asnwer your second question first: yes, the shorfall may be included in a consumer proposal (or bankruptcy).

The car your father is piecing together should be exempt from seizure (ie no one can tak it from you) – to be certain, I would contact a trustee in Nova Scotai and review your situation in detail with them. It sounds like you are getting to the point where you have to do something and most trustees will speka to you for free – make the call.