car
Other debt aside, I have a loan for my car which I need for work. I have under $5000 in equity and my payments are up to date so far. Will I lose my car? It does not matter to me if I lose this particular car, It`s just that I absolutely need a car for work. Can you advise on any options?
Thank you,
Regards,
From a bankruptcy perspective, as long as you have less equity in the vehicle than the amount of the exemption available in your provice then you won’t have any difficulties from the trustee.
However, secured creditors largely operate outside the Bankruptcy process. What happens is in the original security agreement you signed you agreed that if there is an act of default then you could loose you car. Most security agreeemnets define an act of default as missing of payments or the filing of a bankruptcy.
What this means is it is ultimatley up to the lender and most lenders, at least around Alberta, as long as you are up to date on your payments have no issue with this as they will recieve more money if they allow you to keep the care then if they have to seize and liquidate the car.
As a result you are best to confirm that your lender will permit you to retain the vehicle and continue to make payments as originally contracted.