Coomom law and I each have a car

February 9th, 2009 by Questions

I have sadly gotten over my head with debt since my income has slowed down and just can`t seem to recover so I have decided to go bankrupt. I am worried though about losing my car. My common law partner and I each have our own cars in our own names. We both also have our own loans for each car. In fact, we keep everything separate and in our own names including our own bank accounts and just split the bills down the middle. We have nothing in both of our names. If I file for bankruptcy and want to keep making payments on my car loan(I took the loan out at 15,000 and now I owe 10,000), will my car be taken because my common law has one?

Posted from: Alberta


One Response to “Coomom law and I each have a car”

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

You are each allowed to have a vehicle with up to $5,000 equity (i.e. value less amount of financing registered against the vehicle). As long as the cars are less than this $5,000 amount you shouldn’t have any problems with the Trustee.

However, you are not out of the woods yet, as you still need your car loan companies to agree to allow you to retain the vehicles and continue to let you make payments. Now most companies will have no problem with doing so, but there are a few places who normally one (i.e. Royal Bank).

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