Ask A Trustee: Seize or Sue



Ask A Trustee: Seize or Sue

One of the most common questions we are asked at C.E Craig & Associates, is about the Seize or Sue laws in. B.C. If you, or someone you know is struggling with car payments you may find this advice useful!


My son owes around $20,000 on a 0% car loan for 7 years on a 2013 vehicle. He has since become very ill and has been unable to make the payments for almost a year, so the bank has turned it over to a lawyer. At the moment he only earns about $23,000 annually, and he has to pay about $300 monthly in child support.

Can you help him?



Colleen’s Advice:



I am sorry that you and your son are having difficulties!  If he is living in BC, there is a seize or sue law regarding vehicle loans. Since they have opted to sue him, then he should be free to deal with the car.

In this case, you will need to determine the following:

  • Is the value of the car sufficient to pay off this debt?
  • What is the expected fair market price of the vehicle?
  • Would he like to keep the car?


Your son has two formal options, other than dealing with the selling the car himself and paying the debt in full. At this point, he can either file a proposal or declare personal bankruptcy.  Depending on the value of the car, under each alternative, he would most likely be able to keep the car.

Keep in mind that whichever option that you choose is also based on your son’s general monthly personal expenses.  If he is making $23,000 per year, it may be that a personal bankruptcy is the best option for him. However, he may also consider exploring a consumer proposal depending on his circumstance.


The first order of business should be focusing on getting healthy and taking care of himself. After that,  he should strongly consider attending at a free consultation with a Licensed Insolvency Trustee.  It is important that he seek advice from an LIT and not a “debt consultant”. Read this article for more information on the differences between Licensed Insolvency Trustees and debt consultants.


Best of luck!


Colleen Craig, CPA CA, CIRP

Licensed Insolvency Trustee

Solving Your Debt Puzzle


Phone: 250-386-8778  |  Fax: 250-386-6864

204-2736 Quadra Street, Victoria, BC, V8T 4E6


You may also find these articles useful:


Consumer Proposal Vs. Personal Bankruptcy

What Is A Licensed Insolvency Trustee

FAQ: What To Do About Seize or Sue

Regulations Coming For Debt Settlement Companies


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