Car loan debt relief in Canada
Take back control of your finances with car loan debt relief from Harris & Partners. Our team of Licensed Insolvency Trustees is here to help you find a way out of debt. Start now with your own free debt repayment plan.
Safe, secure & confidential
Safe, secure & confidential
Can debt relief help with car loans?
Car loan debt relief can help with car loans by offering a way to keep your vehicle while reducing high monthly payments.
For example, if you’ve filed a consumer proposal, you may still be able to hold onto your car as long as you keep on top of your monthly payments.
A Licensed Insolvency Trustee will review your budget to see whether continuing your car loan is a realistic option.
If not, you may decide to return the vehicle and consider a more affordable alternative.
Speak with a Licensed Insolvency Trustee today to make sure you explore every option.
Filing a consumer proposal for car loan debt relief
A consumer proposal is one of the most effective forms of car loan debt relief.
It lets you make an affordable, interest-free repayment plan for up to five years, and can reduce the total you owe, depending on your income, assets and creditor acceptance.
You usually keep your assets, as long as you keep up any secured payments.
If your car is financed or leased, you may be able to keep it under a consumer proposal as long as you keep up with your payments. This lets you keep the car you rely on while working on reducing your debt.
Just keep in mind that if you fall behind on your car loan, you may need to return the car to the lender and look at lower-cost options.
Get in touch with one of our Licensed Insolvency Trustees today to see if a consumer proposal is the best solution for your car loan debt relief.
How a consumer proposal can help with car loan debt
Your Potential Debts:
Your monthly repayments over a 60-month period would be
Before Help
$1000
After Help
$125
Illustration only. Actual payments depend on your income, assets and creditor acceptance.
How Much Could I Save?
How do I get out of car loan debt?
Two of the best options for getting out of car loan debt are consumer proposals and bankruptcy.
Both solutions provide legal protection from most creditors and give you a clear path out of debt. The best choice depends on your income, expenses and car loan terms.
With either option, whether you can keep a financed car depends on keeping up your loan payments and on how much equity you have in it.
In a bankruptcy, any equity above your province’s vehicle exemption may need to be paid to your trustee if you want to keep the car.
In a consumer proposal, your equity is taken into account when working out your offer to creditors.
A Licensed Insolvency Trustee will help establish your car’s value and explain your options. Book a free consultation today to see which car loan debt relief solution is best for you.
Filing bankruptcy for car loan debt relief
Bankruptcy is often considered a last resort for car loan debt relief, but it still offers a legal route to clearing most unsecured debts and getting a fresh start.
If you have a financed or leased vehicle, you may be able to keep it after filing for bankruptcy as long as your payments are up to date.
If your car loan payments are unaffordable, returning your car to the lender can be part of the bankruptcy process.
It removes any unaffordable finance and wipes any other unsecured debts like credit cards or payday loans.
Speak with one of our Licensed Insolvency Trustees today to see if bankruptcy is the right car loan debt relief option.
Why choose Harris & Partners for car loan debt relief?
Our Licensed Insolvency Trustees create custom car loan debt relief solutions that can reduce what you owe, depending on your situation.
Our multi-lingual team is always on hand to help, providing honest, clear guidance on how to deal with your car loan debt.
With offices across Canada, you can access face-to-face advice on car loan debt relief. Wherever you are, our team is here to help.
Car loan debt relief FAQs
Can you pause car loan payments in Canada?
Yes, some lenders in Canada may allow you to temporarily pause or defer car loan payments. This is often called a payment deferral, and is usually offered during financial hardship—though approval depends on the lender and your payment history.
Keep in mind that interest usually accumulates during the pause, increasing the total cost of your loan. If pausing payments isn’t enough, you may want to consider long-term car loan debt relief options such as consumer proposals or bankruptcy.
How do you get into car loan debt?
Car loan debt often builds up when monthly payments become unaffordable due to high interest rates, job loss, or unexpected expenses. Rolling over negative equity from a previous vehicle or missing payments can also increase the total balance owed on a car loan.
How to get rid of a car loan in Canada?
In Canada, you can get rid of a car loan by:
- Paying it off early (if your finances allow)
- Voluntarily returning your car to the lender
- Refinancing to lower interest rates or payments
- Returning the car and including any shortfall in a consumer proposal or bankruptcy.
Each option has different impacts on your credit and finances, so it’s best to get professional advice to find the best car loan debt relief solution.
Browse debt options in Canada
Get car loan debt relief with Harris & Partners
If car loan payments are weighing you down, our Licensed Insolvency Trustees are here to help you take control. Whether through a consumer proposal or bankruptcy, we’ll guide you to the right car loan debt relief solution for you—one that protects your car where possible and gives you a clear path out of debt.
Don’t wait until missed payments put your car or credit at risk. Book your free consultation today and see how we can make car loan debt relief work for you.
It's never too late to obtain debt help. Book your free consultation today
- Phone number
- 800-268-8093
- hello@harrispartners.ca