Can a vehicle be repossessed for support payments?

October 10th, 2014 by Questions

My son-in-law filed bankruptcy in 2012. . In 2014 he recieved a new vehicle from his employer. He owes over 20,000 in family support, He has to go to court because he lied to the Trustees about family support and other things. Why is his vehicle not being repossessed to pay his family support since his spouse is his preferred creditor?

Posted from: Ontario


One Response to “Can a vehicle be repossessed for support payments?”

, Doug Stuive, CA | Trustee | CIRP said:

The first thing that must be determined is whether the vehicle was actually given by the employer or whether your son-in-law was given the use of a vehicle that is actually owned by the employer. The latter is more likely the case. While the gift of a vehicle can be considered after acquired property it is impossible to know if there is a valid reason why it is not being repossessed. Your daughter should ensure the Trustee is aware of the circumstances relating to the vehicle. It may have something to do with whose name is on the ownership or perhaps there is a lien on the vehicle if it is financed.

This question is best put to the Trustee responsible for the bankruptcy estate. If you are not satisfied with the response you may also inquire with the Office of the Superintendent of Bankruptcy or your daughter can attend the discharge hearing as she is a creditor in the bankruptcy.

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