What to Expect When Filing for Bankruptcy With a Car Loan

What to Expect When Filing for Bankruptcy With a Car Loan

While often viewed as a last resort, filing for bankruptcy can be the right choice for individuals who are unable to meet their payment obligations. Good Fellow’s Auto Wholesalers provides Auto Financing in Toronto and our team always recommends consulting with a bankruptcy professional before making this choice so that you can discuss how it will impact your personal finances and assets. To provide you with more information, our team has put together this guideline to inform you of what to expect when filing for bankruptcy with a current car loan.

If I File for Bankruptcy, Will My Car Get Repossessed?

We understand that concerns will arise when it comes to the status of your car when deciding to file for bankruptcy. However, you should know that there is good news in this situation. 

After deciding to file for bankruptcy, you should know that as long as you continue to make your payments towards your loan, your bankruptcy status will not affect your vehicle. This means, you will be allowed to keep your vehicle and the vehicle will not be repossessed at the time of filing. If possible, our dealership recommends that you continue to make your car loan payments on time as consistency is key. 

The Importance of Timely Payments

The moment that payments are missed, you will be at risk for repossession. While there is a small window to allow you to catch up on missed payments, it is advisable to take proactive steps in meeting the conditions of your car loan. 

When you are proactive, you are safeguarding your vehicle while making a commitment to rebuild your financial status. If you are able to continue to meet your financial obligations, there is no reason that a repossession of your vehicle would be in order. We understand that this can be a challenging time and if you have any questions or inquiries, our dealership would be happy to answer them.

Consult with a Bankruptcy Professional

Every financial situation is unique and therefore, it is best to consult with a bankruptcy professional. These individuals will be able to provide you with advice that is tailored to your specific circumstances. They can guide you through the bankruptcy process, and help you make informed decisions along the way.

How Our Used Car Dealership Can Help

To recap, if you are looking to retain your vehicle during bankruptcy, it’s best to stay informed, make on-time payments, and seek professional guidance. Together, these factors will increase your chances of being able to maintain ownership of your vehicle. 

If you have filed for bankruptcy and you are looking for a used car for sale in Toronto, our team at Good Fellow’s Auto Wholesalers can help. While this situation may pose more challenges, our team is here to help make it possible. If you are ready to rebuild your credit with a car loan after bankruptcy, it’s time that you contact us at 1 (855) 581-9590 today.

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