Home » Types of Debt » Car Loans Debt Relief Canada » Bankruptcy For Car Loans

Bankruptcy For Car Loans

Get a Free Debt Repayment Plan

Safe, secure & confidential

Bankruptcy for car loans

Are you facing up to car loan debt? We know it can seem overwhelming, and it can be hard to know where to turn. At Harris & Partners, we have the experience to guide you through the different ways of dealing with your car debt, and help you decide whether bankruptcy is the right way to go. We believe that you should be aware of all the options available to you, as only then can you make a well-thought out decision, and know which one is best for your current and future car finance needs and your personal circumstances.

If you are bankrupt and have to hand back your car because you have fallen behind on payments, or the payment is too much compared to the value of the car, the car loan company debt for the shortfall will be part of the bankruptcy. If the car loan company then sells the car, you would no longer be responsible for the future payments or any shortfall between the sale price and the amount outstanding on your car finance agreement. When you are made the subject of bankruptcy proceedings, you can keep the car so long as payments are current and you plan on continuing to make them.

Speak with a specialist

Bankruptcy for car loans is not your only option

If you are struggling to keep in control of car debt, you should know that while bankruptcy for car loans is a valid option, it is not the only one available if you find your car loans are becoming too much to handle. Contact us for specialist advice, and to find out more below about consumer proposals for motor vehicle loans and the financing options available for a car outside of an insolvency proceeding.

Harris & Partners can give valuable advice on your car loans

We know that if you are having trouble with car loans, the situation may seem very difficult and cause you stress. However, you do not have to face it alone. We can go through all your options with you, allowing you to make an informed decision on how to deal with your car loans. To speak with a professional regarding your car loans in Toronto, Ontario or on any bankruptcy-related questions and how it could affect your car finance agreements, contact Harris & Partners today at 1-800-268-8093.

For your convenience, we have offices across Canada to offer your advice with any of your financial assistance needs. Click here to find the office closest to you!

Get started today

Free debt repayment calculator

Get a free debt repayment plan tailored to your needs

Expert support from Licensed Insolvency Trustees

Your Information is safe & confidential

Step 1: Your debt

Your plan

Your Information is safe & confidential

Other Debt Types

Car Loans

Bankruptcy for car loans

Consumer proposals for car loans to you

Alternative car financing options

Credit card debt loans

Student loans to you

Payday loans

Tax debt

Line of credit

Browse debt options in Canada

Consumer Proposals

Consumer proposals can be an alternative to bankruptcy that reduces debt and gives you more time to pay back creditors.

Legally stop most collection action
Usually keep your assets
Avoid bankruptcy

Bankruptcy

A last resort when other options won’t work. Some debts, such as support payments and court fines, aren’t released.

Wipe out most unsecured debt
Keep assets protected by provincial law
Support from your trustee throughout

Debt Consolidation

A loan from a bank or lender that combines several debts into one payment.

One payment instead of several
May lower your interest rate
Doesn’t reduce what you owe

Not available through Harris & Partners.

Debt Management Plan

A non-profit credit counsellor arranges one monthly payment to your creditors, usually over up to 5 years.

You repay the full amount owed
Interest may be reduced
Creditors don’t have to agree

Not available through Harris & Partners.

Credit Counselling

Non-profit credit counsellors help you understand your finances and build a budget.

Work out what you owe
Plan a budget
Learn money management skills

Not available through Harris & Partners.

Debt Settlement

Private companies negotiate a lump-sum payment with your creditors, who don’t have to agree. They aren’t Licensed Insolvency Trustees

Not regulated under the BIA
No legal protection from creditors
Fees often charged upfront

Not available through Harris & Partners.

Corporate Bankruptcy

An orderly way to close a company that can’t be rescued. Directors may still be personally liable for some debts.

Orderly wind-down of the company
Assets sold by the trustee
Ends creditor claims against the company

Division I Proposals

For businesses, and for individuals whose debts (excluding their mortgage) are over $250,000. Change the terms of your debt by reducing what you owe, extending the repayment period, or both.

Repay part of your debt over time
Keep your business or assets
Avoid bankruptcy

Corporate Insolvency

Options for a business that can’t pay its debts, from restructuring to an orderly wind-down.

Restructure through a Division I proposal
Protect jobs where viable
We’ll assess every option

Support across Canada

Why choose us for consumer proposals in Ontario?

Remove up to 80% of your debt

Our Licensed Insolvency Trustees can provide a customised consumer proposal that could shrink your debt by up to 80%.

Get debt help

Professional guidance in any language

Our multilingual team offers debt support in Farsi, Portuguese, Italian, Tamil, and more, so you can feel comfortable every step of the way.

Meet the team

Nationwide support

With offices in nine provinces, we offer in-person debt support across Canada—from Atlantic provinces to Ontario to British Columbia.

See our locations

Contact information

It's never too late to obtain debt help. Book your free consultation today

Phone number: 800-268-8093
Email: hello@harrispartners.ca

Send us a message

Contact form

       
   Harris & Partners Inc.
   2262 Google reviews 
  Write a review 
 
 
 
   
 
 
      Posted on Google  
   
   Arlene Almozara 
 29 October 2026
 
 
 Trustindex verifies that the original source of the review is Google. there are great and kind.
  
 
     Posted on Google  
   
   Janice Giesinger 
 29 October 2026
 
 
 Trustindex verifies that the original source of the review is Google. I am so grateful for Harris & Partners!
As I was the slippery slope of barely making ends meet, an Ad kept popping up on my YT feed that talked about debt relief.  When I realized how bad my financial position really was, I made the call.
From the first minute of communication until now, my experience with Harris and Partners has been nothing but positive.  They have been incredibly helpful!  And they even listened while I fought off tears and they understood the stress I was feeling around my financial position.  They are not therapists but they certainly seem to understand the sort of stress that is caused when one cannot meet their financial obligations.
These experiences were met across the board, no matter who I was speaking to.
I felt relieved and fortunate when they told me that they could help me and keep me from filing for bankruptcy.
They were able to reduce my monthly payments, significantly, based on my income.
I now, have a bit of breathing room and no longer feel the pressure in my chest that I did when I didn't know how I was going to be able to pay my rent or if I was going to lose my car.
Thank you Harris and Partners.  You've really helped to make a difference.
  
 
     Posted on Google  
   
   Brett Pieschel 
 28 October 2026
 
 
 Trustindex verifies that the original source of the review is Google. I’ve been very happy with my experience with Harris & Partners. From the outset, communication has been prompt, questions have been answered clearly and thoroughly, and everything has moved along smoothly without me having to continually follow up or chase anyone down. The entire process has been handled with efficiency, professionalism, and a genuinely friendly approach, which has made navigating an otherwise stressful situation considerably easier. No muss, no fuss, and very much appreciated!
  
 
     Posted on Google  
   
   GHM Support + IT 
 28 October 2026
 
 
 Trustindex verifies that the original source of the review is Google. Great Service
  
 
     Posted on Google  
   
   SHONA LEGAULT 
 28 October 2026
 
 
 Trustindex verifies that the original source of the review is Google. The people that I have spoken with in this situation have been very helpful, understanding and calm.  I feel bad enough with what has happened in my own life/situation.  Harris and partners have been so patient and understanding offering guidance all the way.
  
 
     Posted on Google  
   
   Mercy 
 28 October 2026
 
 
 Trustindex verifies that the original source of the review is Google. Excellent service! They were efficient, reliable, and delivered exactly what I needed. At first, I honestly thought it might be a scam because it seemed too good to be true, but I was pleasantly surprised to find out that it’s 100% legit! The whole process was smooth and hassle-free. I highly recommend their service to anyone looking for a reliable and efficient solution. Definitely worth it! 🙌
  
 
     Posted on Google  
   
   Ellen Dunlop 
 28 October 2026
 
 
 Trustindex verifies that the original source of the review is Google. Thank you Harris and Partners. For all your help.
  
 
     Posted on Google  
   
   ella frost 
 28 October 2026
 
 
 Trustindex verifies that the original source of the review is Google. Very kind and understanding.  Thank you
  
 
     Posted on Google  
   
   Murder Dena 
 28 October 2026
 
 
 Trustindex verifies that the original source of the review is Google. Everyone you talk to is so helpful And nice. They don’t make you feel bad about your situation and they help you get through it step-by-step and it’s been a wonderful experience.
  
 
     Posted on Google  
   
   Connie Holczer 
 28 October 2026
 
 
 Trustindex verifies that the original source of the review is Google. Fast, compassionate, reassuring & professional. The follow up was prompt & task reminders didn't feel like a chore. Very positive experience & life is so much less stressful.
  
 
 
  
 
   Verified by Trustindex  Trustindex verified badge is the Universal Symbol of Trust. Only the greatest companies can get the verified badge who has a review score above 4.5, based on customer reviews over the past 12 months. Read more