secured car loan
January 23rd, 2013 by Questions
I have 2 secured car loans and I am deciding what to do-file for CP or bankruptcy.I also have unsecured debt. I want to continue with the car payments, but I want to make sure the creditors will not take my cars if I file for bankruptcy.Is that possible? Can the creditor request the whole otstanding balance on the car loans or take the cars?
Posted from: Ontario
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January 23, 2013 at 9:41 pm, A licensed trustee said:
As long as your car payments are current when you file bankruptcy or a proposal, the secured creditor does not have the right to call the loan or repossess the cars. The law does not permit a credit granter to terminate any agreement simply because the borrower has filed bankruptcy or a proposal.
If your payments are NOT current then they can do whatever they want, let you keep paying or call the loan. So if you wan tto keep the cars keep the payments up to date.