vehicle
i relation to a vehicle, if we financed the vehicle for instance and the outstanding is 20,000. is the loan itself considered a secured loan or unsecured, because when we financed it we did not have to put anything up for collateral for it, they just increased the interest rate i guess. so would we lose the vehicle in this instance or just have to pay for it? and also if they said we have to give them 5000 for a downpayment before christmas what is the situation with that? will we need to give that to them or will that be involved in the bankruptcy? sorry this is all very confusing right now.
Posted from: Alberta
With respect to the vehicle, whether or not it was used as collateral will depend on how the original documents were drawn up. However, you will find that it is very rare for a company to finance a vehicle and not take any security. But to know for sure you could pull a property search at your local registry office or you could review your original documentation.
Regardless, of whether it is secured or not, to keep the vehicle you will have to pay for it. The only difference is that if it is secured you will continue to pay the creditor, if it is not you will likely have to pay the trustee responsible for your file.
As for the down payment, I don’t have enough information to be able to determine what this is for, you will have to contact a local trustee, explain the situation with the vehicle in more detail and perhaps have them review the original financing agreement before we will be able to advise you as to the $5000.00 you are referring to.