We have a vehicle loan with the maker of our car and it is secured by the vehicle. If we stop payments and offer to return the car, will the loan still be payable?
Bankruptcy Alberta: Free Information about Bankruptcy in Alberta
We have a vehicle loan with the maker of our car and it is secured by the vehicle. If we stop payments and offer to return the car, will the loan still be payable?
If you return the vehicle, it will be sold, the proceeds of the sale will be applied to the oustanding balance of the loan (less and legal and sales costs of course) and you will still be responsible for the remaining balace that you originally contracted to pay.
Now to deal with this remaining balance you can start to review other options (i.e. consumer proposal, bankruptcy, orderly payment of debts etc), but ultimately you must then find something to do to deal with the remaining balance.