In most cases you do keep your car when you file personal bankruptcy. In this video, we explain exemption limits and alternatives.
For more information read our full article here.
Many people who file for bankruptcy in Ontario own or lease a car and they need their car for work or for personal reasons.
The good news is, in Ontario if you own a vehicle, and it is worth five thousand six hundred and fifty dollars or less, you get to keep it. Even if it’s worth more, you can still keep your car by paying the difference to the trustee.
If you have a lease ora car loan, you can still keep your vehicle as long as you can keep current on your payments.
Although it doesn’t happen often, sometimes people decide that their car payments are just too much. If you want, you can give your car back to the lender and let bankruptcy eliminate any balance you have owing.
When you meet with your Hoyes Michalos professional, we’ll explain how your car, or any other assets, are affected by filing bankruptcy.