Debts related to car or recreational vehicle loans (secured loans)

Financial difficulties often force us to reassess our priorities, especially regarding our vehicle and its associated loan. Between the need for transportation and its high cost, the question arises: should you keep your vehicle or let it go? You might also consider whether you really need two vehicles.

If you are facing financial problems, 2 situations may arise:

• You want to keep your vehicle (car, motorcycle, ATV, or RV).
• You want to return it either because you no longer want it or it has become too expensive for your budget.

Let’s take a closer look at each of these 2 situations.

I’m facing financial difficulties and want to keep my vehicle

In the context of a debt consolidation, a consumer proposal, or even bankruptcy, you can keep the asset in question if you wish, as long as the payments are up to date and the asset is insured.

I’m facing financial difficulties and want to get rid of my vehicle

If you do not wish to keep your vehicle, you can return it to the creditor, and any loss they incur can be included in a consumer proposal or your bankruptcy. You will not have to pay it. However, in the case of a debt consolidation, you will be responsible for any loss the creditor may suffer, and they could obtain a judgment for the full amount of the debt.

Now you know that it is possible to file for bankruptcy without losing your car, and that one of the advantages of a consumer proposal is that it allows you to choose whether or not to keep your vehicle.

However, it is always advisable to consult a licensed insolvency trustee, such as Jean Fortin & Associés, if you are experiencing debt problems. This debt specialist can analyze your financial situation and inform you of all possible solutions free of charge. They will also answer your questions and concerns regarding your assets to help you make an informed decision.