Free Consultation

Two cars….Joint Bankruptcy

After 30 years of good credit, my wife and I have considered bankruptcy for the first time. We are almost $75,000 in debt after an illness has left me on permanent disability. We already remortgaged 3 times to clear bills and now have no equity. My wife has a $250/mth leased car she needs for work. I purchased a used car for $5000 and returned my leased truck early ( 6 months ago). This was to reduce our monthly expenses by about $450. What will become of our vehicles?

One Response to “Two cars….Joint Bankruptcy”

A licensed trustee said...

You should check with a trustee in your area to determine what the local policeis are regarding motor vehicles. If you live in Ontario you are allowed to keep one motor vehilce worth up to $5,650 – it is “exempt” from the bankruptcy.

The lease may be more problematic – the company that is financing the lease has the right to terminate your contract if you file for bankruptcy – some do, many do not. If you call a local trustee they should be able to tell you if your wife’s car lease is with one of the companies that will allow you to keep the car (assuming you keep up the payments).