Living abroad

Posted on Tuesday, March 13, 2007

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I currently have a car loan (in Canada) and a personal loan with a finance company, but I am currently residing in the US and cannot afford to make either payment. I want to simply return the vehicle to the bank but I am told that if I surrender the vehicle it will be auctioned off and I will be responsible for tor the balance. Is this true, and can my wages be garnished in the US for this balance. What about the loan, if that is not paid can they seize the items listed as collateral even if I am in the US? What about bankruptcy…and how would I go about that when I am living hereUS? Thanks!

Filed under: Bankruptcy
 posted by Questions @ 10:16 am
1 Expert Comment:

 At March 19, 2007 | 10:25 am , Barton Goth, GCO, Bankruptcy Trustees Said...

I will deal with each of your questions in order:

1. The car loan, the answer is yes, typically what happens is that when you return the vehicle the bank simply sends it to auction and if the sale price isn’t sufficient to cover the full balance of the loan and costs of repossession and sale, the shortfall would be something you are fully responsible for.

2. In terms of wages being garnisheed in the US, it would be rare due to the costs of getting a court order for such across an international border, but technically could be possible.

3. Any time collateral is given on a loan, if you fail to keep your commitments under that contract, the lender is able to seize the goods listed. This is irrespective of where you live or where the goods are located, although, the willingness of the institution to do so is questionable as the cost associated with seizing across borders may be significant.
4. As for filing a bankruptcy in Canada while living abroad, this can be possible, but typically only if you have lived in Canada within the last year or if you still own property in Canada. For further information you should contact a licensed trustee in the area you last resided and they will be able to help determine if this would be possible.

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