what was once secured is now not

  • 1 Replies
  • 1923 Views
*

caseymouse33

  • Guest
what was once secured is now not
« on: June 01, 2014, 10:54:35 PM »
Last year I bought a trailer in one province and the loan got registered in the province I was living in at the time. This year I declared bankruptcy EXCEPT  on the trailer because I was making payments on that with no problems. Last week the trustees office called and told me that the loan I had was not secured and that I should consider giving that up. I called the bank and asked if they had the lien number for the trailer and they gave me the number. Now it seems it doesn't matter if I have the lien number or not cause the chances of them taking the trailer seem really high even though my papers state trailer keeping not giving up. Went to the bank for advice and all I got was " sorry don't know what to tell you ". When I checked my bank account too the bank loan isn't showing like it has been all along. Do they have that right to do that to a person making a secured loan unsecured even though I didn't declare bankruptcy on the trailer and was still and have been making payments on it all this time.
                                                                                                       Thanks

*

NotATrust-E

  • Sr. Member
  • ****
  • 263
  • +1/-0
    • View Profile
Re: what was once secured is now not
« Reply #1 on: June 02, 2014, 10:51:56 PM »
There may be some differences in your province's equivalent to Ontario's Executions Act, but here are my thoughts:

According to Section 127 of the Bankruptcy an Insolvency Act, a secured creditor can surrender a secured claim to a trustee. If this happens, it means that the trailer is the property of the trustee to liquidate for the benefit of the creditors. If the trustee wants, they can sell you the equity in the trailer.

I'm not sure what the trustee meant by "Giving it up". If the trailer is secured, the secured creditor can take it back at any time. If it is unsecured, it would be an asset that belongs to the estate, under Section 67 of the act.

Either way, it either belongs to the bank or to the trustee. On a related note, no matter what your bankruptcy documents say, you can't declare bankruptcy on just some of your assets. When you filed, you signed something that said this:

Whereas the debtor is insolvent and desires to assign and to abandon all his/her property for distribution
among his/her creditors, in pursuance of the Act,

This indenture witnesses that the debtor does hereby assign to the trustee all the debtor's property for the uses, intents and purposes provided by the Act.



 

Sitemap 1 2 3 4 5