In bankruptcy Do I Have to return Boat and Trailer if I can afford payments?
July 14th, 2010 by Questions
Im thinking about going bankrupt. I was without a job for a while and accumulated or 40k in credit card debt. I can no longer afford the credit card payments , but I have a boat and trailer that are financed through a local credit union.
I am wondering, if I go bankrupt, will I have to give up the boat and trailer? Or can I keep them if I can afford those payments? Really the only thing that is killing me is the credit card payments, I have considered a consumer proposal, but I think bankruptcy is the option for me in this case.
Would I be able to keep the boat and trailer if bankrupt, if I was able to keep making payments to the bank on them?
Posted from: Saskatchewan
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July 14, 2010 at 9:17 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
This is partially going to depend on whether there is any equity in the boat or trailer, but if not there is nothing in the bankruptcy legislation that requires you to give up this property. If the property is fully secured and you can afford to make the payments on it, it is your decision.
The only risk is that if you determine at some later date that you cannot afford to keep it, if your return the property then the bankruptcy cannot protect you from the consequences like it can if you return the property before filing bankruptcy.