2 Cars – 1 Loan
September 6th, 2012 by Questions
We consolidated our 2 vehicles a while ago to one loan of $40000 and the bank put a security on both vehicles. We live out of town and both commute to work at different times. If we claim bankruptcy will we be able to keep our vehicles?
Posted from: Saskatchewan
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September 06, 2012 at 9:25 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
The first thing you need to consider is the value of both of the vehicles. If their combined current market value is less than than the amount financed ($40,000) then as long as you continue to make payments on this loan you won’t have any troubles if you file a bankruptcy.
Now if their combined value is more than the amount financed you may run into some difficulties. The legislation stipulates that when a bankruptcy is filed you are permitted to keep property that falls within your provinces exemptions. In Saskatchewan you are allowed to have one motor vehicle (needed for occupation): no dollar limit. So likely you won’t run in to much difficulty, but you should discuss this with a local trustee to be sure.