Licensed Insolvency Trustees Who Speak Your Language

Bankruptcy for Car Loans in Toronto, Ontario

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 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 eleven 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!

Copyright Harris & Partners Inc 1996- 2020 - Legal

Legal notice