What happens to a secured debt in backruptcy if it is worth less then you owe? We just bought a holiday trailer over a year ago and since then our incomes has dropped aprox $30,000 a year. We are now struggling to keep up, and selling would make us still owe money on it right now. What would happen to it if we had to claim bankrutcy? What about a proposal?
Bankruptcy Alberta: Free Information about Bankruptcy in Alberta
The secured debt is not dealt with in a bankruptcy unless you give back the secured property (holiday trailer) prior to filing a bankruptcy or a proposal. But as long as you retain the property you must continue to pay the secured creditor in full.