Comments on: Bankruptcy and the impact on a fully secured vehicle. http://www.bankruptcy-edmonton.com/bankruptcy/2008/08/bankruptcy-and-the-impact-on-a-fully-secured-vehicle.html Bankruptcy Edmonton Tue, 07 Feb 2012 15:47:45 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Barton Goth GCO Bankruptcy Trustees http://www.bankruptcy-edmonton.com/bankruptcy/2008/08/bankruptcy-and-the-impact-on-a-fully-secured-vehicle.html/comment-page-1#comment-235 Barton Goth GCO Bankruptcy Trustees Thu, 04 Sep 2008 12:56:35 +0000 http://www.bankruptcy-edmonton.com/bankruptcy/2008/08/bankruptcy-and-the-impact-on-a-fully-secured-vehicle.html#comment-235 This is not up to the trustee, but to the lender. As far as the bankruptcy is concerned, there is no value to the asset so it is not an issue. However, the finance company has the right to seize the vehicle upon an act of default, and often the original financing agreement you signed will have defined an act of default as either not making payments, or filing a bankruptcy. So upon you filing a bankruptcy the lender has a decision to make, do they let you keep the vehicle or do they seize it. Practically speaking most lenders prefer you to keep the vehicle as long as your up to date on your payments. But it is important to understand that this is determined by the lender. This is not up to the trustee, but to the lender. As far as the bankruptcy is concerned, there is no value to the asset so it is not an issue.

However, the finance company has the right to seize the vehicle upon an act of default, and often the original financing agreement you signed will have defined an act of default as either not making payments, or filing a bankruptcy. So upon you filing a bankruptcy the lender has a decision to make, do they let you keep the vehicle or do they seize it.

Practically speaking most lenders prefer you to keep the vehicle as long as your up to date on your payments. But it is important to understand that this is determined by the lender.

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