If you are bankrupt and have to return your car because you are 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. You would no longer be responsible for future payments or any shortfall after the car loan company sells the car. In a bankruptcy, you can keep the car so long as payments are current and you plan on continuing the payments.
Bankruptcy is not your only option for overwhelming car loans. Learn about consumer proposals for motor vehicle loans and the financing options available for a car outside of an insolvency proceeding.
To speak with a professional regarding your car loans in Toronto, Ontario or any bankruptcy related questions, contact Harris & Partners today at 1-800-268-8093.
We have ten convenient offices located across Ontario in Toronto, the GTA, and surrounding Toronto cities to accommodate financial assistance needs. Click here to find the office closest to you!