Question about PMSI on a vehicle and vehicle exemption
My question is about PMSI and vehicles that are exempt. My lender did not register the financing statement on my vehicles, so I am told he became an unsecured creditor, the vehicle is worth less than $6,500 and needed for work as there is no public transportation, so if the statement isn’t registered (my trustee took ownership of my vehicle) shouldn’t the PMSI be invalid and I should be able to use it for the exemption, the value is $4,800, and I need it for work, and the lien was invalid. My trustee is trying to sell my vehicle back to the lender and telling me I can’t get it exempt because it has a PMSI, but the PMSI shouldn’t be valid because the lien wasn’t registered! Ugh! Help I am going to lose everything I have left if I lose my car!
PMSIs (Purchase Money Security Interest) are complicated and have different rules for different areas in Canada. I suggest you see your trustee and ask him to explain the logic behind his decision that, inspite of the PMSI not being registered, the vehicle still does not belong to you.
If you do not receive a satisfactory answer you can ask the Office of the Superintendent of Bankruptcy this question: