We filed a Consumer Proposal almost a year ago and now find the payments difficult to make each month. We / I have a car it is my only asset. The payment s are high on it also, but I work in the country and there is no transit system. Is there any thing we can do now regarding possibly going from an already existing Consumer proposal to a Bankruptcy and still keep my vehicle so I can work. The vehicle is a 2006 and I have paid off 14,000 and still owe 7,000. We really have to do something.
Consumer Proposal change to Bankruptcy
posted by Questions @
1 Expert Comment:
At January 15, 2010 |
9:18 am
, Bart Goth, Trustee in Bankruptcy Said...
There is no problem with going from an existing Consumer Proposal to a Bankrutpcy.
Now in terms of the car, this is really going to depend what the current market value of the car is. As the province of Alberta is governed by the Civil Enforcement Act and it stipulates that you are able to have up to $5,000 equity in the vehicle. So the magic number for you would be $12,000. If the fair market value of your vehicle is $12,000 or less, then you wouldn’t have any issues with the vehicle as long as you continue to make the payments on it as originally contracted.
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