Default on car loan during bankruptcy
March 15th, 2011 by Questions
I filed bankruptcy in August 2010 but decided to keep my car and continue with payments on it. I am now thinking this was a big mistake. I am having difficulty making the payments (though have never missed one). Could I decide now to include this in my bankruptcy or I am stuck with the car and the payments?
Posted from: British Columbia
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March 15, 2011 at 7:06 am, A licensed trustee said:
You need to speak to your trustee about this – if you have continued to make payments on your car loan after you filed then the lender has the right to treat this as a “post bankruptcy debt”. That means the lender has the right to pursue you for the shortfall when they sell the car. If you are extremely lucky, the lender may not do this, but they have the right to – that’s why you should go and speak to your trustee BEFORE you decide what to do with the car.