Question: I feel my options are slim. I have been unemployed for over a year just got a full time job last week. Over this past year I have managed to just hold on to everything I have lots of outstanding bills and debts the biggest is my car which I owe $14,000 on still. With only being on EI I have scraped by. My car payment a whopping $350 a month is drowning me. I’m always behind 2 or 3 payments and the car company keeps telling me they should have taken the car. I have recently told them I can’t do it anymore I would voluntarily give the car up and they are still sitting on it. Recently it was towed away due to road conditions we are no longer allowed to park on city streets after 9pm so I called the car company told them to get the car and they agreed they would. Now I’m still getting calls about my late payments and them asking me when will I be making the payments. the car is impounded still. What happens in this situation with Bankrupsty?
Answer: Once the car company repossesses your car, they become and unsecured creditor for the balance owing. If you file for bankruptcy anywhere in Canada, that debt would be included in the bankruptcy.
Since you no longer have the car and have no intention of making payments on it, you should ensure that all automatic payments from your bank account have stopped. You should also open a new bank account at a new bank to protect any money in your bank account. A bankruptcy trustee can provide you with more information.