Licensed Insolvency Trustees Who Speak Your Language

Bankruptcy for Car Loans in Toronto, Ontario

Dealing with 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 how to deal with your car debt, and whether bankruptcy is the right way to go. We believe you should know all the options available to you so you can make a well-thought out decision.

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.

  • In bankruptcy, you are protected from the seizure of a car by a creditor as long as you are current on the car payments.
  • The first payment you make after filing for bankruptcy starts a new contract.
  • If you keep your car but are unable to make all the payments, any resulting amount owing to the car loan company can’t be claimed by the bankrupt as part of the bankruptcy.

Bankruptcy for Car Loans is Not Your Only Option

If you are struggling with car debt, you should know that while bankruptcy for car loans is a valid option, it is not the 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.

Harris & Partners Can Give Valuable Advice for Your Car Loans

We know that if you are having trouble with car loans, the situation may seem very difficult. However, you do not have to face it alone. We can go through all your options with you so you can 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 any bankruptcy related questions, contact Harris & Partners today at 1-800-268-8093.

For your convenience, we have twelve 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!

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