Liens
We had a loan on a tent trailer and about 6 months ago we consolidated our debt on to a line of credit. The original loan on the tent trailer was paid and they used the tent trailer as an asset for the line of credit. We are now thinking of filing for bankruptcy but we have sold the tent trailer and I need to know if this is going to hurt me. So if I use something as an asset then can the bank put a lien on it if I am not behind on payments for that line of credit.
Posted from: Alberta
If the asset was secured and you sold it without the bank’s permission then you could have an issue. The bank may already have themselves listed on title, and there is a possibility they could try to seize the tent trailer.
This really isn’t impacted by the decision to file bankruptcy or not, the only thing that may become an issue is if the bank has not registered against the trailer and you file for bankruptcy, they loose the right to register, so in the long run if the bank has not already registered a bankruptcy may help this situation out a little.