Understanding Bankruptcy in Saskatchewan: Can You Retain Your Vehicle?
Residing in Saskatchewan and considering filing for bankruptcy, but unsure if you can retain your car? This is a common question that most Trustees and Proposal Administrators in Saskatchewan often encounter. Let’s break down the topic to provide a better understanding.
Assessing the Value of Your Vehicle
The primary step is to evaluate the worth of your vehicle. You can either look up the value of your car in the “Black Book” or have an expert appraise your vehicle and provide the details to your Trustee. Note that the Trustee will only accept the valuation provided by a qualified professional who deals with or values cars.
Owing More Than the Car’s Worth
If the outstanding amount on your vehicle surpasses its worth, you can retain it, provided you maintain regular payments, along with the required bankruptcy payments. In Saskatchewan, vehicle equity up to $10,000 is exempt.
For instance, if you possess a fully paid car valued at $8,000, you can keep your vehicle post-filing for bankruptcy or a Consumer Proposal. Similarly, if you own a car valued at $16,000 with an outstanding amount of $9,000, you can retain it. However, you must continue making the necessary payments to the secured creditor of the vehicle.
Non-Exempt Amount
In case your vehicle, with no outstanding amount, is valued at approximately $13,000, you are expected to pay a Non-Exempt amount of $3,000 to the Trustee. Although it might seem overwhelming, the Trustee can assist you in arranging a feasible payment plan.
Limitations on Vehicle Ownership
Remember, these rules apply to one motor vehicle only. If you own another vehicle without any finance, the exempt limit does not apply. You would need to either surrender the vehicle or pay the Trustee the full value of the vehicle.
Financial Responsibility
While you can most likely retain your vehicle, you must consider the financial implications of doing so. Releasing the vehicle can decrease monthly expenses by eliminating lease and insurance payments, as well as managing gas, maintenance, and repair costs.
Returning the Vehicle
If you do not wish to retain a vehicle financed for more than its worth, you can return the vehicle to the secured creditor. The shortfall would then be included in your bankruptcy or Consumer Proposal.
Conclusion
Thus, living in Saskatchewan and considering bankruptcy should not necessarily imply surrendering your vehicle. However, it is vital to consider the financial responsibility associated with retaining the vehicle. Always consult with a Trustee to understand the best course of action for your situation.
