Frequently Asked Questions
- Can I Keep My Vehicle?
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<p>If your vehicle is owned outright (free and clear) you may retain it provided its market value does not exceed $5,000. (If you are subject to a Family Maintenance Order your exemption allowance drops to $2,000).</p> <p>If the vehicle is jointly owned with a spouse or relative, your portion of the equity cannot exceed $5,000.</p> <p>If the vehicle is secured by a lender (held as collateral for a loan) the equity in the vehicle cannot exceed $5,000.</p> <p>If the equity in your vehicle exceeds $5,000 it is still possible to retain the vehicle provided that arrangements are made with your Trustee, for any over-exemption amount to be paid to the Trustee for the benefit of your creditors (by installments if necessary).</p> <p>Lenders cannot repossess a second vehicle simply due to you filing a proposal or for bankruptcy provided that you are current on your pamentsand are not in some other way in default. If you are in arrears, special arrangement will be necessary with the lender.</p> <p>If your vehicle is financed through GMAC, Ford Credit, or Chrysler Credit you will generally find them to be accommodating.</p> <p>The banks generally have more strict guidelines but overall are also relatively good to work with. Our Trustee will be pleased to provide you with more information on this subject at your initial consultation, which is offered to you free and without obligation.</p> <p>Some lenders may be secured by your furniture or other assets as well as your vehicle. Lenders such as Citifinancial and Wells Fargo traditionally take household furniture as collateral. To determine if this is the case, look on your Security Agreement for a section on “Security” or for a section outlining “ assets held as security” for details.</p> <p>It is common for these lenders to be owed a great deal more than these assets are worth, and so special consideration will be necessary for your specific circumstances. Our Trustee will be pleased to clearly outline your options if that is the case.</p>
DISCLAIMER
All of the information on this website is provided as general information to those seeking general answers to their questions.
This information should not be construed as professional advice.
Every insolvency situation is different and the outcome of each will very depending on its unique circumstances.
Do not rely on this information, or take any steps which are based upon this information without first seeking professional advice.
To obtain specific professional advice a questionnaire must be completed and a personal evaluation conducted by our Trustee.