Secured Debt

  • 5 Replies
  • 1244 Views
*

CB

  • Newbie
  • *
  • 3
  • +0/-0
    • View Profile
Secured Debt
« on: April 12, 2017, 08:44:06 AM »
Hi,

I went to see a certified bankruptcy trustee, and I think I got bad advice..which I am confused about because this is something he does all the time. He was trying to convince us to include our trailer (RV) in our consumer proposal because our payment would stay the same but that it would free up extra cash. Also we are severely upside down in that loan (payments are in good standing). However, I have been reading that secured debts cannot be included...so why would he suggest this?

Thanks

CB

*

NotATrust-E

  • Sr. Member
  • ****
  • 263
  • +1/-0
    • View Profile
Re: Secured Debt
« Reply #1 on: April 12, 2017, 07:38:35 PM »
It depends on what you mean by ‘include’. ‘A consumer proposal must be made to your creditors generally’ under Section 66.12(3). This means that you must make the proposal to all of your creditors, both secured and unsecured.

Secured debts cannot be included in a proposal in the same way that unsecured debts are – you can’t pay off a car loan via a consumer proposal. However, you can include debt that was previously secured.

Let’s say that you had $50,000 in credit card debt and were proposing to pay $25,000 over 5 years, or $416 per month. This would be a gross payment of 50%, which is very good. You also owned a car with $10,000 left on the loan, but was only worth $5,000 resale, and had monthly payments of $400.

What you CAN do in this scenario is return the car and instead pay the shortfall – in this case, $5,000. You would still be offering the same $25,000, but on $55,000 of debt, which is still a very solid 46%. This would mean that you would save $400 per month in payments, which would be basically your entire monthly payment.

The bottom line: You can’t include secured debt in your proposal, but if you return your trailer, you can include the shortfall after the sale.

*

Wetcoaster

  • Full Member
  • ***
  • 150
  • +4/-0
    • View Profile
Re: Secured Debt
« Reply #2 on: April 13, 2017, 07:56:49 PM »
Talk to 3 or 4 Trustees as well as 4Pillars.  First appointment s are free.

*

ANTONfag

  • Newbie
  • *
  • 7
  • +0/-0
    • View Profile
Re: Secured Debt
« Reply #3 on: April 17, 2017, 11:35:46 PM »
СМОТРИТЕ ВИДЕО. Узнайте как почти каждый из молодых людей и
девушек становятся стройнее на 1 кг в день
с помощъю еды котрая есть в любом холодильнрике!
Жми сюда и смотри  видео прямо сейчас - <a href=http://www.xudeem.stylew.ru> ХУДЕЕМ К ЛЕТУ</a>

*

happycamper

  • Newbie
  • *
  • 8
  • +0/-0
    • View Profile
Re: Secured Debt
« Reply #4 on: April 24, 2017, 04:35:49 PM »
We were told that it is best to include our RV.  Were were also upside down on the loan.  He told us creditors not only look at what you are including, but also what you choose not to include (because they get to see it all).   He says keeping a vehicle is acceptable to creditors as everyone needs a vehicle.  But, he said that in his experience creditors would look at the fact we want to keep an RV and most likely decide to vote no.  He said in 90% of cases, they come back and say "if you can make the payment on your RV, we feel you can make our payment as well" 

*

tuneman

  • Newbie
  • *
  • 6
  • +0/-0
    • View Profile
Re: Secured Debt
« Reply #5 on: June 16, 2017, 11:43:27 PM »
happycamper,

I did a voluntary repossession of a vehicle before going into a CP. That meant that BMO took the secured asset back, then inserted the shortfall, like $4000 into the CP.  Everyone is correct you cannot include your secured asset into the CP. Since you are upside down in the RV, get rid of it... it'll just end up costing you more money in the end.

I had a motorcycle that was worth $12,000, but I only owed $3000 on it when I went into the CP. So I kept this asset, made the final payments and now I have an asset instead of a debt. If I was upside down on it, then it would have been smarter to have it voluntarily repossessed.

 

Sitemap 1 2 3 4 5