Debt solutions for car loan debt
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Debt solutions for car loans
If you have filed for bankruptcy or a consumer proposal and you have outstanding finance or a lease agreement on your car, we can help you keep your car as long as your car payments are up-to-date.
A Licensed Insolvency Trustee (or what was formerly called a Trustee in Bankruptcy) can take a look at your budget and determine whether you have enough funds to continue to service your car loan. If you cannot keep up with lease or financing payments, you may want to consider returning the car to the lender and looking for a less expensive alternative.
But before you take such action, we recommend that you speak with a specialist. You may be able to take advantage of debt consolidation options which are widely available, and we may be able to recommend a solution which will help you keep your car finance record on track.
There may be options which can reduce your monthly payments, but extend the term of your car finance agreement yet have little impact on your credit rating, and we can talk through these with you.
Is your car financed or leased?
At the date when you enter into bankruptcy or a consumer proposal, you have two options with a car that is leased or financed. You can:
- Keep the car and continue the payments
- Return the car to the lender
Motor vehicles worth less than $5,650 cannot be made the subject of an agreement to continue making finance payments. The trustee uses the black book to establish the value of the motor vehicle. If its value is $5,650 more than your loan, you can make arrangements with your trustee to buy back the car.
What are your options?
- Bankruptcy for car loans
- Consumer proposal for car loans
- Financing a car outside of an insolvency proceeding
Contact us
Contact information
It's never too late to obtain debt help. Book your free consultation today
- Phone number
- 1-800-268-8093
- hello@harrispartners.ca