0036 - Debt Related Queston: Bankruptcy Question # 0036
I have a vehicle that I can no longer afford to make payments on. It is a “secured” loan. What does this mean and what can I do?
Sometimes when a person purchases a vehicle on credit, the creditor will “secure” the loan and register the vehicle under the Personal Property and Securities Act of BC. This means that if the person stops paying the loan, then the creditor has the right to seize the vehicle and re-sell it to recover the monies loaned.
In BC, creditors are allowed to “seize or sue”; they cannot do both. If you can’t afford to catch up and continue the payments, then stop making payments on the vehicle and allow the creditor to seize it, or surrender it directly to the creditor. Make sure you retrieve your plates, as they must be returned to ICBC to cancel the insurance.