Seizure by creditor

Posted on Wednesday, March 5, 2008

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I owe a bunch of money. I owe credit cards, have a couple of bank loans, lines of credit, an overdraft some money marts etc.

But it is not my debt that I am worried about but my assets. All I own is my tv, some miscelaneous furniture and some small personal stuff. The only major asset I have is a lease, but I guess I don`t own this honda finance does.

The problem is that the collection agency keeps calling me. The collection agent said that I have to pay or they will take both my car and my furniture. If I declare bankruptcy can they do that?

Filed under: Money Management and Bankruptcy
 posted by Questions @ 12:02 pm
1 Expert Comment:

 At March 11, 2008 | 7:49 am , Barton Goth GCO Bankruptcy Trustees Said...

The Civil Enforcemnt Act provides a list of exemption sthat are available in the province of alberta. The way it reads is that you are allowed to have up to $4000 household furnishings and personal effects (resale value, not replacement value), and a vehicle of up to $5000 equity.

So from the sounds of things your household items are not a problem and on the surface neither is your vehicle. However, when dealing with a vehicle there is a bith more involved as you have a secured creditor (i.e. lease holder).

Secured creditors take priority over the Civil Enforcement Act (essentially you can give a creditor specifi security over your property whether it is exempt or noth, so if you pledge all you household furnishings on a loan, you have given them the right to seize the property in question irregardless of exemptions). The key then becomes payments, you will need to arrange with secured creditors (i.e. lease) to continue to maintain payments on the property (i.e. vehicle) in order to keep it. The secured creditor is not obligated to agree to this, but in most instances preferes this to having to seize and sell the property.

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