Grant Thornton Limited

1-888-455-6060

I have a motorcycle, snowmobile and ATV, will I lose these if I go bankrupt?

Not necessarily. If there is a loan against your recreational equipment, you may continue making the monthly loan payments if you can afford to do so. This is because the loan company is typically a secured creditor and is not affected by the bankruptcy.

You will have to make arrangements with the Trustee if there is any equity in your recreational equipment. Equity is the difference between the value of the item and the amount owing on the loan. If there is equity, then you will have to pay the equity to the Trustee if you want to keep your recreational equipment. In most cases, the person going bankrupt arranges a monthly payment to the Trustee to pay off the amount of equity.

If you cannot afford to continue the monthly payments to the loan company, then you can choose to give up the recreational equipment as part of the bankruptcy. When doing so, as part of a bankruptcy, you do not have to worry about the creditor suing you for the amount left owing on the loan.

 

Licensed Insolvency Trustees
Tel: 1-888-455-6060
www.freshstartatlantic.ca
Fresh start…the road to financial freedom

 

BonnieBryan headshoulders 2016

Bonnie K. A. Bryan, CIRP, Licensed Insolvency Trustee