In most cases a bankrupt is able to keep their vehicle. Vehicles typically fall into two categories:
- Vehicles that still have money owing on them.
- To keep these vehicles the bankrupt will need the car payment to be up to date when they go into bankruptcy and keep future payments up to date or the bank or financing company will seize the vehicle. If the payments are up to date the bank cannot seize the vehicle or call the loan. The bankrupt can however, at the beginning of the bankruptcy, choose to voluntarily return the vehicle and include the car loan in the bankruptcy.
- Vehicles that are owned outright.
- A vehicle that is owned outright may still be retained by an individual filing for bankruptcy, if the vehicle is needed for work and/or medical reasons and is worth less than a specified dollar value. The specified dollar values are called exemption limits and are different for each province.
Please refer to the section on bankruptcy for more information on exemptions.