Address
111 Waterloo Street, Suite 310
London, ON N6B 2M4

Can I keep my Car?

November 27, 2020

Yes, in a bankruptcy, you can keep your car, there are four scenarios.

  1. Your car is worth less than $6,600 – and has no loans on it – keep it.
  2. Your car has a car loan against it – the trustee will verify the loan, keep paying the loan – keep the car
  3. Your car is worth more than $6,600 but has no loans – pay the trustee the difference between $6,600 and the value of the car – keep it.
  4. Your car is only worth scrap – it’ll cost money to tow it away – keep it.

In the alternative, you don’t want to keep the car anyway.

  1. Your car is worth less than $6,600 – and has no loans on it – sell it and keep the money.
  2. Your car has a car loan against it – the trustee will verify the loan – and let the secured creditor seize the car.
  3. Your car is worth more than $6,600 but has no loans – you or the trustee will sell it, the trustee will allow you $6,600 the rest of the money goes to the trustee.
  4. Your car is only worth scrap – it’ll cost money to tow it away – keep it.

Note: All values and liens must be verified by the trustee. Call for more details: 519-646-2222