Keeping my car and filing for bankruptcy

September 8th, 2007 by Questions

I am debating on wether or not I should file for bankruptcy. I am currently 30k in debt, mostly accumulated in a previous relationship (he too is in debt and it is agreed that we will take care of what is in our name). Here is my problem. I am currently paying for a car (bought used, and has a year and a half of payments left), it is NOT a lease, once it is paid off, it belongs to me. I don’t see the value being more then 6000$ on it as it has almost 150,000 kms on it and is presently 6 years old. I am a single mother of one (with another one on the way withing the next 4 weeks) and I need my vehicule for doctor’s appointements, daycare, work (when I go back) etc. Even though I have access to public transportation, just to go from home to daycare to work would cost me about 3 hours a day by bus but by car it takes me 30 minutes. There is no way I would be able to have my kids up at 3 in the morning just to be able to have myself at work by 8am. Should I file for bankruptcy, will I have to give up the car? This seriously concerns me.
This seriously concerns me.


One Response to “Keeping my car and filing for bankruptcy”

, A licensed trustee said:

The decision of whether or not you may keep you car (and therefore keep making payments on the debt) will be made by the company that financed your car. Most of the large banks and lenders in Canada will allow you to keep you car when you file for bankruptcy, but there are a couple of exceptions. The Bank of Nova Scotia and the Royal Bank have policies of repossessing vehicles regardless of payment history if a borrower files for bankruptcy.

The best way to find out what your lender”s policies are is to call and ask them BEFORE you file. The lender is really the only person that knows what they are going to do…

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