Car taken-can I include in bankruptcy?

August 23rd, 2011 by Questions

My car was taken this morning by a bailiff as i was in arrears by $770. It is a negative equity and I would prefer to include it in bankruptcy if possible. Am I correct in understanding that it is no longer a secured loan as the bank now has the vehicle and that I can include it in my bankruptcy?? I would really appreciate it if someone could answer quickly as I must decide whether to pay to get it back or not today. I would then like to make an appt to deal with my bankruptcy.

Thank you VERY much!

Posted from: Ontario


One Response to “Car taken-can I include in bankruptcy?”

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

You are correct, a bankruptcy is largely designed for the unsecured creditors, but as soon as the bank realized on the vehicle the remaining balance owing is unsecured. So if you file for bankruptcy the amount still owing on the vehicle will be dealt with by the bankruptcy.

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