Seize or Sue – Secured Loans in BC

Client Inquiry: Seize or Sue – Secured Loans in BC

Hello, I had come to see you a while back about questions regarding

bankruptcy. You may still have a file on me. I was hoping for one last piece

of advice. When I saw you your advice to me was to get rid of my car as I am

paying too much for it. I agree and am trying to unload the car. I found a

buyer for the car and was hoping the bank would settle but they have refused

and are causing me problems. I know in BC it is seize or sue and I even

wanted to voluntarily surrender the car but the bank is still being

difficult. What do I do? Just cut off payments from my bank basically? I am

worried they will try and garnish my wages. Any advice you have would be appreciated.

 

Colleen’s Reply:

Hello XXXXX

Yes, there is a seize or sue law in BC. Which means that a creditor can

seize a vehicle covered by their security, or opt to sue the debtor for the

full amount of the debt, but cannot do both. This means that if you stop

making the payments for the car, and if the secured creditors seizes the car

for non-payment, they cannot then come after you for any shortfall.

 

The best bet is to sell the car if it can be sold for more than the debt so

you can pay it off in full and get out of your financial obligation.

 

However, if the car is worth less than what the debt is for, and you decide

that you simply cannot afford to keep making the payments, then simply

stopping the monthly payments to the bank would certainly force their hands.

Generally it is in the best interest of the secured creditor (in this case

the bank) to repossess the car, but not always. They do have the option to

simply sue you for the full amount outstanding.

 

However, to ensure that this applies to you, make sure that the car is

actually seized and not simply surrendered to the dealer as this may not

make the definition of “seized” under the BC Personal Property Security Act.

We also suggest cooperating fully with any bailiff appointed to seize the

car and making sure that you remove your insurance plates before the car is

taken. You cannot cancel your insurance without having the plates to

surrender to ICBC and will be charged for ongoing insurance if you are on a

monthly financed insurance program.

 

The only way the bank can garnish your wages is if they first sue you for

the debt, and this would mean then that the car would be yours 100% debt

free. If the amount of the debt is too high for you to deal with, we can

assist you with a proposal to settle with the bank or even a personal

bankruptcy, but this would really be the last alternative. It is very

likely that once you stop paying for the car, they bank will come and get it

and you will not hear from them again.

 

 

Colleen Craig, CA, CIRP

C.E. Craig & Associates Inc

204-2736 Quadra Street

Victoria, BC

V8T 4E6

ph 250-386-8778

fax 250-386-6864

www.cecraig.com

 

Solving Your Debt Puzzle

 

Client Response:

Thank you SO much for replying so quickly Colleen. That really clears it up

for me. It’s so stupid that they won’t settle for the amount I was offered

on the car because it is more then they will get at auction for it. Not to

mention less the charges of whatever it costs for them to seize the car.

But since they won’t do that I will just stop payment and hopefully they

just come seize the car

If I do need any further assistance I will let you know.

Again thank you for taking the time to reply to my email. You’ve made me

feel a bit better about this situation now.

 

Sincerely,

 

XXXXX

106 Comments
  1. john 3 years ago

    I have a loan contract and a lien on a used car in vancouver on which the owner (my son) has stopped making payments. How do I seize the car from him.

    • Author
      colleen 3 years ago

      This is really a legal question and out of my advice area. You would be looking at seizure under the Provincial Property Security Act of BC and I suggest that you refer to that Act directly, obtain legal advice or the services of a local bailiff. I could recommend some in Vancouver is you would like.

  2. Erin 3 years ago

    When the bank decides to seize the vehicle will I be notified? How would this happen? How far in advance would I get be told?

    • Author
      colleen 3 years ago

      Hi Erin. When anyone decided to seize a vehicle, there is a formal process in order for them to do this. You will first have to have defaulted in your agreement under the lease or loan, and they have to give your notice that you are in default. Once this is done, they can employ the services of a bailiff who can find the vehicle and repossess for the secured creditor. There is a more detailed explanation of this process on the consumer protection BC website. The bailiff will also leave you paperwork outlining your options. These options are different between different provinces so you should always check with a lawyer.

  3. Needingsomehelp 3 years ago

    Hi there my name is Joshua and i am going through problems with paying off my current car loan it is too expensive and it is taking up more than half of my monthly income including insurance and gas. I am going to get it repoed , I do not want to refinance it. I am will to take the hit on my credit file. I am just wondering what are the chance of them suing ? I just got the car in mach or 2015 when my family was going through some tuff times and my ex girlfriend wanted of the lease of my last vehicle so i Decided to switch up. I was purely pressured into buying this vehicle and I fully regret getting it. If i knew i could have sold my old vehicle and been debt free i would have done so. The dealership knew this but refused to tell me since they just wanted to make money off me and not care about my life or anything it. So what do you think my best option is just un insure my car and call the lender and tell them i wont be making anymore payments or just cut them off and wait?

    • Author
      colleen 3 years ago

      Hi Joshua
      The best way to prompt action by your creditor is to not pay them. Especially if your car has a significant value, then they will be very interested in getting the car back as soon as possible. Seeing that you just bought it in May 2015, I think it very likely that they will choose to repossess and not the other option of suing you. The more the car is worth, the more likely they are to want to get the car back as soon as possible so they can sell it to someone else.
      Colleen

  4. Trevis 3 years ago

    My experience is similar however they chose to sue. In a effort to stop a wage garnishment the vehicle was surrendered. Nissans lawyer then told me the vehicle was in bad shape and (disposed) of leaving me with a deficiency of the full value of the vehicle. It was a 2013 versa with less than 60,000 kms well maintained however had a dent in the hood a crack in the windshield and needed new tires so basically it was desposed of for less than 2000$ in repairs. I have recieved no proof of appraisal, photos or anything at this time simply a email saying it was destroyed and i still owe full value. The matter to s still on going but id be careful because if they can do this im sure they will sue rather than repossess

    • Author
      colleen 3 years ago

      Yes, the creditor can sue, but if they sue you, you get the car. If they have taken the car, they CANNOT sue. This only applies to loans and does not apply to leased vehicles and also only applies to vehicles that are used for personal purposes not commercial.

  5. Cheri 3 years ago

    I am going through the same process. I have returned my car to the dealer. I then got a text msg saying that they are refusing the car and are returning it to me and now threating to sue me for the remaining balance. It is in house financed. I can not afford the car or the repair bills that it is incurring. I purchased it in april of 2015. Please help

    • Author
      colleen 3 years ago

      Hello Cheri
      Yes, the dealer does have the right to return the car and sue you for what is owed. If they choose to do this, then the car is yours to sell if you so choose, and can use the proceeds to pay off the debt, but will owe the full amount. You can negotiate with the dealer directly a payment plan that will work for you. If you feel you cannot pay the full amount, it may be worth your while entering into a compromise arrangement using a consumer proposal. We would be happy to have a chat with you to discuss your options as we offer a free consultation. Please feel free to contact the office to set up your initial consultation if you that that we can help. Colleen

  6. will 3 years ago

    Hi Colleen,
    I want to give up my car loan as I am already several payments behind and trying to catch up on the loans is putting me into a deeper hole… I bought the vehicle in Alberta but have since moved to BC and the vehicle is insured with ICBC. There is negative equity on the vehicle, I am fine with having it reposessed just want to know if the fact that I brought it in from Alberta has any bearing on this.
    Thanks
    Will

    • Author
      colleen 3 years ago

      Just having bought it in Alberta does not limit you access to the laws of BC. However, the PPSA (Personal Property Security Act) does assume that your creditor know or should know that you reside in BC as then this obliges them to operate under BC law. So, you can’t just skip across the provincial border one day and then have the BC laws apply. You need to reside her for a period of time in BC and registering the car would help you confirm this fact. But once again I am not a lawyer and don’t give out legal advice but rather recommendations based on my insolvency experience.

  7. Cj 3 years ago

    Hi, i purchased a new car last july 2015, ( which is the biggest mistake) and now i went to the dealers to asked some possible options , but definitely they refused to take it back and opt to give me a lower payment still i can not afford . im a single parent, they cut back my working hours . my priority right now is the welfare of my child ,food and home.i can’t afford to pay the car anymore. what is the best option for me. please help me

    • Author
      colleen 3 years ago

      Hi There
      Sorry to hear of your financial situation. If you have a car loan, and stop making payments towards this loan, then the secured creditor has only two options. Well three I guess, but one is not really an option. Anyway, they can come and take the car back (seize) or sue you for what is outstanding, or they can just let you keep the car (not likely). The failure on your part to keep paying will force their hand one way or another. So if they seize the car, they cannot sue you for the shortfall. This only pertains to loans though, not a lease.

  8. Lomar 3 years ago

    Hello,
    I had my vehicle repossessed in 2014. I looked at my report and the repossessed vehicle is still there now in 2016. When repossessed, the vehicle then sold at auction. They are now after me for the remaining amount. I live in BC and am somewhat familiar with the BC seize or sue law. my question is, do they have recourse for the remainder of the loan since seizing? Or should the entire loan be written off? Are there any options available to get the remainder owing off of my report?

    • Author
      colleen 3 years ago

      Hello Lomar
      Yes, entire loan should be written off meaning that they cannot collect legally from you. However, whether or not this action is reported on your credit bureau is a separate matter. The same is true for Statute of Limitations – creditors cannot proceed against your in court to get the money back, but they can post on your credit bureau. However, you should ensure that the information reported has been reported properly in that there may have been a shortfall but they are not actively collecting against you.

  9. Lisa 3 years ago

    I have a lease truck that is to much for me to now pay for, does the seize or sue law apply?

    I could simply return it, but the amount owning wouldn’t even be what the truck is worth given the accident it was in last year, any options? If they seize the truck can they sue me for any loss?

    • Author
      colleen 3 years ago

      Hello Lisa
      Unfortunately, “true leases” are not governed by the seize or sue provisions of the BC Provincial Property Securities Act. So, yes, you would be responsible for the shortfall if you had a true lease. But you may not have a true lease – if after the end of the vehicle lease, you have the right to purchase the vehicle or it title simply passes at the end of the lease, then it is not a true lease but a financing arrangement. If you have a financing arrangement, then the PPSA seize or sue would apply to you

      When you buy something on credit, you typically sign a “security agreement” – The specific agreement may be called several things, like a “conditional sales agreement” or a “chattel mortgage” or a “lease with an option to purchase”. But the type and name of agreement aren’t important because they all work in a similar way. Basically, the agreement will say that you give the seller or lender a “security interest” in the goods as security for what you still owe—like when you give the bank a mortgage on your house.

      The only exception is where you have a true lease, usually relating to a car or a large piece of equipment, where you pay monthly for the right to use it. In this case, you have no ownership rights in the item at all, and under the lease agreement, you would have no right to buy the item at the end of the term, although you do have the right to use the car during the lease term.

      Is there anyone you know who could assume the lease? If you sold the truck and paid off as much of the debt as you could, could you manage the payments (i.e. shortfall) ? If you only have once creditor, you could see if they will compromise. Or if the debt is too big for you to manage, you could always do something formal like a consumer proposal. However, don’t get talked into taking on more debt to get out of this debt. This is sometimes what happens to people when they approach dealers/financing companies etc and they are talked into “more manageable lease terms” which just means that they will be in debt significantly longer.

  10. John 3 years ago

    Hi Colleen,

    In 2008 I financed a Harley Davidson motorcycle. I made payments faithfully for 2 years until I fell quite ill and could not work for some time. I stopped making payments deliberately when Harley Credit would not work with me on new payment terms. Harley never repossessed or sued, because of my illness I can no longer ride a motorcycle, so I have had it sitting in my garage ever since un-registered. I’m at a complete loss as to what I can do with this bike?

    Any advice would be appreciated.

    John

    • Author
      colleen 3 years ago

      HI John
      If you are not using the bike, then you should sell it (and it sounds as if you may need the money anyway) Your best bet would be to find out if there are any liens registered against the vehicle. Most liens are typically registered for 5 years so it may be that any lien has expired. For a small fee you can run a PPSA (Provincial Property Security Act) search on your name/VIN # and that will tell you if you can sell it free of liens. Without this confirmation the lien, if there is one, will follow the bike even with a new owner, so this would be very unpleasant for any new owner.

  11. Concerned Dad 3 years ago

    My son-in-law has a truck that was purchased last year in Alberta and right from the beginning, the paperwork was sketchy. He didn’t receive proper paperwork and didn’t actually sign the financial documents. When the bank supplied the documents, it was clear that he hadn’t signed it but it was “close enough” that they weren’t going to stand down from it. It wasn’t pursued at the time as AMVIC was looking into it. Now, they’ve moved to BC and it has been confirmed that the loan shows up in the BC property registry. He can’t afford the payments and wants them to repossess it and take the credit hit. They are calling several times a day now but he’s concerned he’s going to slip and say the wrong thing and be liable. How long does it usually take before they just give up and come after the vehicle? (they know the address)

    • Author
      colleen 2 years ago

      Whether or not the creditor will come to collect the vehicle will depend on the value of the vehicle. If your son-in-law is still paying, I would advise him to stop making payments, contact the creditor and inform them in writing that he has stopped insuring the vehicle and that he is parking it on the street. (if he actually does this the City police will tow the vehicle away and have it impounded, so I don’t suggest that you actually do this, just a bit of threat to spur the bank into action.) B.C operates under a seize or sue law, which means that if they do choose to seize the vehicle they cannot sue your son-in-law for the shortfall. The sooner your son-in-law stops paying, the sooner the creditor should appear.

      C.E Craig & Associates is a Licensed Insolvency Trustee, not a lawyer, and this can in no way be considered legal advice.

  12. S 3 years ago

    Hello. I have a 2009 vehicle that I bought on financing three years ago. There are two years left on my loan, which means I have paid off more than two thirds of the loan. However, the car just died (it’s only seven years old) and will require more in repairs than it is worth. The manufacturer (who did the financing) will not warranty it as the warranty ran out in October, and I cannot afford the repairs, which would cost nearly $10000. I still owe $8000 on the car. At this point, my options are to cease payments or tell them I can’t afford the car, and see what they do, or just sell it for $2000 and pay the remaining $6000 for nothing. Am I within my legal limits to tell them they can have it back? If they seize it, knowing that it requires repairs and does not run right now, then they cannot force me to pay the amount outstanding, correct?

    • Author
      colleen 3 years ago

      Hello S
      If you are in BC, and if you stop making your payments, the financing agent has the option to either seize the vehicle or sue you. The choice is theirs to make. If you simply stop making the payments, then they will most likely seize the vehicle. Then you no longer have to worry about he shortfall.

      However, selling the vehicle would not be a good idea. There is most likely a lien on this vehicle and the lien will follow the vehicle wherever it goes. So, the person purchasing the vehicle may not be too happy to have a vehicle with a lien on it – the bank could always come and take the vehicle from them.

      If you sell and paid them a chunk of the debt, they can still sue you for the shortfall, as they did not seize it. So, your best bet is to stop paying so they will come for the vehicle. A bailiff will likely show up to take the vehicle and you can let him or her know that it is not running when they get there. Remember to take your plates off so you can cancel your insurance as you can’t do this if you don’t have the plates.

  13. Tom 3 years ago

    I have a similar circumstance. I have read your response regarding leased vehicles, however my question is slightly different.
    My company leased 3 vehicles and I had to sign a personal guaranty. We defaulted on a payment and 2 weeks later the leasing company came and took the vehicles back. Subsequently my company went bankrupt and a year later I am now being contacted by a collections company. I understand that the seize or sue law would not apply to my company lease, however I was advised that it would apply to my personal guaranty. Can you answer that for me?

    • Author
      colleen 3 years ago

      I have not heard that the seize or sue law would apply to personal guarantees. The seize or sue law is governed by BC PPSA. Your “personal guarantee” is really just a contract or promise to pay, which is not covered under the PPSA. You may have been guaranteeing a car loan, but what you were really doing is entering into a contract which is not part of Personal Property Securities Act. So yes, unfortunately, I believe that you will be responsible for this debt. But once again, I am a bankruptcy trustee and not a lawyer.

  14. Samuel leroux 2 years ago

    Hi I am inquiring about my mom. She is now retired and my dad has just passed away. He has a high monthly payment on his car that my mom can’t afford. Ford is telling her to just drop the car off and they will take care of it, but she is on the loan which is more than the car is worth, so there for it will hurt her credit. Someone was telling me that they can sue her for what they can’t recover from the car? I though if they have the car they can’t go for more that they would have to give the car back then sue? Am I being to trusting to take the car and think it will be felt with?

    • Author
      colleen 2 years ago

      Firstly, I would like to express my deepest sympathies to you and your family Losing a loved one is never easy, even more so with the added burden of financial issues.

      Unfortunately, guarantors cannot benefit from the seize or sue laws, which means that Ford is entitled to seize the car and continue to seek payment for the shortfall. My advice in this situation is to cooperate with Ford and to do your best to negotiate with them. Due to the circumstances surrounding the payments, they may forgive the shortfall. Remember, it is important to to get any negotiation in writing from them whenever possible. I have seen in the past that they routinely forgive credit card debts when the primary debtor dies. This is all relative and will depend greatly on the value of the debt, the value of the vehicle and the extent of the shortfall. Hopefully this works out for your mother.

      C.E Craig & Associates is a Licensed Insolvency Trustee, not a lawyer, and this can in no way be considered legal advice.

  15. Jackie Champion 2 years ago

    Hello Colleen,

    I have a 2014 Nissan Frontier 4 x 4 and the biweekly payments are slowing killing me… I have negative equity on the truck and cannot afford the payments even though I am working 35 hours a week… I have already consolidated my credit cards so not sure what else to do in my best interest? I have a bankruptcy that will be removed off my file January 2017 but here i am in financial disaster again…. Debt is slowly killing me!!

    • Author
      colleen 2 years ago

      The first advice I give to debtors is this; do not buy new vehicles! This is never a good idea as a new vehicle will depreciate 20% right off the lot, and keeping up with the payments can prove very difficult, especially for someone already in a precarious financial position.
      In this case, I would suggest that you stop payment and allow the vehicle to be seized. Can you find alternative cheaper methods of transportation such a carpooling, public transit or family members? Or is there a reliable used car available for you to purchase from a friend or family?

      I am also curious as to your comment of “bankruptcy will be removed from my file in January 2017” – are you referring to your credit report or discharge from bankruptcy? I will assume you mean removed from your credit report as the truck is a 2014 and I do not think that you purchased a new vehicle while in bankruptcy? I just want to point out that even though you are concerned about your credit report, it did not stop you for obtaining debt to buy a new vehicle. I often talk to people about the illusion of having good credit or being obsessed with their credit scores. It means very little and having a bankruptcy did not stop you from getting a new truck. Your main focus should be in developing and making purchasing decisions with a budget that you can afford.
      In your question it is not clear where your other sources of debt are from, however if you are finding yourself struggling financially again, you may want to consider filing a consumer proposal. This option is an alternative to bankruptcy, will stop the interest immediately and will allow your to compromise the principle of all of your debt. We offer a free consultation if you would like to discuss this option, or if you are outside Victoria, I can refer your to other colleagues in other areas across Canada.

      C.E Craig & Associates is a Licensed Insolvency Trustee, not a lawyer, and this can in no way be considered legal advice.

  16. steve lyons 2 years ago

    Could you answer a question I an alberta resident who purchases a car new car in bc would I be covered by bc sieze or sue laws or albertas sieze and sue laws please let me know as there is no posibilitys of finding work

    • Author
      colleen 2 years ago

      If the vehicle was purchased in B.C, and B.C is listed on the car registration, then it will be covered by B.C laws. Your residency in Alberta should not affect the laws covering your vehicle. However, if it is registered in Alberta, then Alberta’s laws will apply.

      I do not practice Insolvency Work in Alberta so I am not 100% sure, but I do believe that Alberta has applicable seize or sue laws under that jurisdiction meaning that if a creditor seizes you vehicle, they do not have the legal right to go after you for any shortfall once the call is sold.

      C.E Craig & Associates is a Licensed Insolvency Trustee, not a lawyer, and this can in no way be considered legal advice.

  17. Tracy 2 years ago

    I have a 2011 Dodge Caravan. I am behind about $5000 in payments and the bank just won’t come get it. I financed through a credit union. I cannot afford the vehicle anymore due to losing my job. Problem is my mom cosigned for the vehicle. If they seize can they still go after her? The lady at the bank keeps telling me to try and trade it off and she will release the lien at a lower amount and I can make payments on the shortfall. I owe $28,000 and the value of it is about $6,000. I’d rather they seize it and we be done with this!

    • Author
      colleen 2 years ago

      The Seize or Sue law in B.C only applies to the primary debtor.
      What that means in this case, where your mom is the guarantor, is that the creditor can still go after her for payment regardless of whether or not the vehicle is seized. Your best bet under these circumstances is to cooperate with the bank. If you are able to sell the vehicle, you should. My advice is to use that sum to pay the bank the remaining shortfall, then pay back your mom for any cost she incurred, and to ask for the lien to be released.

      C.E Craig & Associates is a Licensed Insolvency Trustee, not a lawyer, and this can in no way be considered legal advice.

  18. Joan 2 years ago

    Hello, can a person repossess my vehicle when their Lien is no longer registered on PPSA? I did a Lien search and it no longer shows up. Thank you

    • Author
      colleen 2 years ago

      No, your creditor cannot outright seize this vehicle, but they can still proceed to court and get a judgment against you that may allow them to ultimately seize it.

      It is important to understand the that PPSA serves to notify others that there are liens etc. on movable goods. It also outlines the debtor and creditor rights to go after or seize these goods if something goes wrong. It is a registration process to outline specific rights and “curative action” if the agreement is breached (which means the creditors right to seize your vehicle if you stop paying and your rights to try to stop it).
      If you have a contract with another party, like when buying a vehicle, or using a credit card, you have agreed under that contract to pay what you owe. If you fail to pay, then you have breached your part of the contract and the other party can sue you for the shortfall. So, in your case, if you do not pay for the vehicle, they can sue you for what is outstanding under the contract , say $10,000 and get a judgement against you (piece of paper stamped by the court confirming that you owe the debt). With a judgement against you, your creditor can do certain things, like garnish your wages or seize your assets. However, you can keep some assets safe from seizure (Exempt Assets) including $5,000 equity in a vehicle. So, in your question, it would depend on the value of the debt and the value of the vehicle. If your creditors get a judgement against you and the value of your vehicle is greater than$5,000, then yes, they can go after your vehicle. ,
      The creditor has authority to get a judgment against you under the contract, and failure to register does not invalidate this contract. Unfortunately, just because the lien is no longer registered, this does not mean that the debt is settled if money is still owed under the contract. Therefore, while the creditor cannot seize your vehicle under the PPSA, they can still seek judgement to obtain a court order to seize it.

      C.E Craig & Associates is a Licensed Insolvency Trustee, not a lawyer, and this can in no way be considered legal advice.

  19. Jennifer 2 years ago

    Hi Colleen

    Quick question. There are 2 buyers on a vehicle. The vehicle is repod. Are any of the buyers libel?

    • Author
      colleen 2 years ago

      Hello
      If you buy a vehicle personally you should always check to make sure that the vehicle does not have any liens registered against it as the lien will follow the vehicle no matter who the owner may be. So, if you buy a vehicle with a lien registered by a bank, the bank can come and repossess the vehicle from you and you are out that vehicle. You will not be held responsible for the bank debt, but you would be out the cost of the vehicle. Your only recourse if this happens to you, is to sue personally the person from whom you purchased the vehicle for the price that you paid (damages). You of course would have to find that person, sue them (get a judgement against them) and then use that judgement to get you money back (like seizing their assets, garnishing their wages etc.) If you cannot find them, or if they have no ability to pay you back, or if they declare personal bankruptcy, then you are out of luck. And there is the issue of the costs surrounding your collection actions including your personal time and efforts etc.
      So, it is highly recommended your perform a Personal Property Security Search (PPSA) prior to purchasing any vehicle privately. If you purchase at dealership, they will perform these legal search for you.
      So, in a slightly long winded answer, if you purchased a vehicle that has a pre-existing debt, then you would not be held liable for that debt.

  20. Rozana 2 years ago

    Hello,
    I am in same situation on a Ford Fusion 2015. Car’s worth $19k but pay out amount is $29 (-$10k)
    1. How do you stop payments when the bi-weekly payment automatically comes out of my bank account?
    2. I just want to clarify, as I am confuses. So, if they decide to sue me, you say the car then is mine 100%, with no debt owing.
    3. But what happens to the lawsuit? isn’t that their way to collect money, so that assuming the car automatically becomes mine to freely dispose and sell, so that they can collect the balance owing?
    4. So if they sue and car is mine, that means the lien will be removed and I can sell it?

    • Author
      colleen 2 years ago

      Hello
      Any per-authorized payments can be stopped – you should inform the secured creditor in writing that you are stopping the payments and then inform the bank that these payments are to stop as well. If the secured creditor is a problem (and continues to try to collect from your account) it is always your option to simply shut down that account and move institutions (go to a different bank) This is really your last option though as it is a pain to move banks all of the time. Be careful with your bank and make sure that it is closed/payments stopped so that they do not send you into overdraft.

      And point 2, yes if they sue you, then any lien they may have had on the car is now not enforceable, so the car is yours outright. Secured creditors at time do not remove the liens from the PPSA (Provincial Property Security Registry) and you should notify the creditor, in writing, if they do decide to sue you, to remove the lien from the PPR.

      3. So, yes, if they sue you, in your case, you will have an asset worth $19K but a judgement against you for $29K leaving a shortfall of $10 K. Does not really help you much on the surface, but if you were to file for Consumer Proposal, the vehicle could be used to settle the debt completely or could form part of the offer anyway. (each Consumer Proposal offer is different based on individual circumstances)

      Or you could sell the car, and make payments for the shortfall of $10K over time. OR, If you chose to declare bankruptcy, you can keep a car (claim it as exempt) up to a value of $5,000. Any amounts over this amount would have to be paid back to the estate trustee for the benefit of your creditors. But consider that cash is not an exempt assets; if you subsequently sold the $19K vehicle, used $5K to buy a new vehicle and had $14K remaining in cash, then the $14K would have to be turned over to the trustee upon bankruptcy, but you could keep your $5K car.

  21. B 2 years ago

    Hello,

    I have a vehicle I bought 2 years ago in Alberta where I had resided. Now I live in BC and my vehicle has been registered here for 5 months. Do you think I would still fall into the BC rules for Seize or Sue?

    Thanks

    • Author
      colleen 2 years ago

      The PPSA says that the secured creditor has 30 days to register their lien in BC once the vehicle is located in BC(or 15 days after notification), ,so the BC legislation should apply to you

      BC PPSA States

      Law applicable: general rules for goods and collateral in possession of secured party

      5 (1) Subject to sections 6 to 8, the validity, perfection and effect of perfection or non-perfection of

      (a) a security interest in goods, or

      (b) a possessory security interest in an instrument, a negotiable document of title, money or chattel paper,

      is governed by the law of the jurisdiction in which the collateral is located when the security interest attaches.

      (2) [Repealed 2007-10-117.]

      (3) A security interest in goods perfected under the law of the jurisdiction in which the goods are located at the time the security interest attaches, but before the goods are brought into British Columbia, remains perfected in British Columbia if it is perfected in British Columbia

      (a) not later than 60 days after the goods are brought into British Columbia,

      (b) not later than 15 days after the day the secured party has knowledge that the goods have been brought into British Columbia, or

      (c) before the date that perfection ceases under the law of the jurisdiction in which the goods were located when the security interest attached,

      whichever is the earliest, but the security interest is subordinate to the interest of a buyer or lessee of the goods who acquires his or her interest without knowledge of the security interest and before it is perfected in British Columbia under section 24 or 25.

      (4) A security interest that is not perfected as provided in subsection (3) may be otherwise perfected in British Columbia under this Act.

      (5) If a security interest referred to in subsection (1) is not perfected under the law of the jurisdiction in which the collateral was located when the security interest attached and before the collateral was brought into British Columbia, it may be perfected under this Act.

  22. Christina 2 years ago

    Hello,

    I got a previously owned vehicle from Kia original applewood. I got laid off this year and had trouble finding a new job. I also got kicked out of my parents house in which I had to go and find a place which means spending money on car payments or rent. I choose rent as I have a daughter. I didn’t get the loan with the carplacw but with Scotia dealer advantage. I am behind on payments and the insurance is pulled off and the car is sitting awaiting for them to seize it. The bank keeps calling telling me to sell the vehicle but they are telling me if the amount is not enough they will not take the lien off the vehicle. I owe 24g still on the vehicle and am lucky if I’ll get 6g for it now. I have spoken to a bankruptcy agent and he advised me they will eventually come and seize the vehicle. The bank is saying he is wrong and they don’t seize vehicles? Is this true or are they just being difficult.

    • Author
      colleen 2 years ago

      Hello Christina
      Banks do indeed seize cars – all the time in my experience – well their agents do anyway. It may be that what the banks wants you to do is to sell the vehicle and give them the money so they can sue you for the shortfall. I once heard a story from someone who said that they were in the same sort of issue – a bank was dragging its feet in getting picking up the car in hopes they could convince the debtor to sell the car on their own and pay the bank in full. They could not pay the insurance so there were no longer any plates and let the bank know that the car was about to be parked on the street. The bank knew, so I am told, that an uninsured vehicle parked on any street would be towed by the police to an impound lot, so they were suddenly motivated to pick up the car. I don’t think that the person actually did park the car on the street, but it seems that just the threat of doing so prompted the bank to act. I guess the car had some value so the bank decided it was better to get something than nothing at all. But each situation is different and I wouldn’t suggest any particular action. Once again, this is not legal advice and it only pertains to BC

  23. Ron 2 years ago

    I bought a vehicle from an Alberta car lot while I was living in bc .i registered the vehicle in bc . Had a safety inspection done in bc . I have alway lived in bc and had the truck I’m bc . Does bc seize or sue hold for me as I am dealing with rifo who keep sending me a voluntary surrender form.

    • Author
      colleen 2 years ago

      Hello, Based on the information your provided, the seize or sue laws in BC should apply to you. It is based on the province where the vehicle is registered.

  24. concerned father 2 years ago

    Is Alberta Seize OR sue Seize AND sue?

    • Author
      colleen 2 years ago

      Hello, I believe that Alberta may have the same “seize or sue” legislation as BC. Your best bet is to check with an Alberta Trustee.

  25. louise joy kaz 2 years ago

    hello. I have to newer vehicles on my name. I can no longer afford both , family breakdown. I feel like its time to give up one. I tried for 1 year now to hold onto both. but I cannot keep up anymore. what are the consequences if my car gets repossess? thanks!!

    • Author
      colleen 2 years ago

      Hello
      If you are in BC, and if the secured creditors choose to seize the vehicles, than you would not be held responsible for any short fall on the debts.

  26. Howard 2 years ago

    Could not find one amongst your many i.e.
    Oct/2016. My 66 yr old Wife bought car for daughter (based on another pie in the sky job opp) for 12.5K. No written agreement, except a sloppy written promissory note I did. Then in Jan/2017 daughter (friends advice on her 55K in cc debt to file) hence gone to friends trustee who suggests “proposal”. Are we SOL.?

    • Author
      colleen 2 years ago

      Hello Howard
      I am not sure what constitutes “screwed” in your eyes, but, Yes, legally, if you were going to sue you daughter, you could use the “sloppy agreement” as evidence as contract or intent to repay on her part (not a gift) ( I would think). So, you have a legal claim against your daughter and it is possible then if your daughter is going to file a Consumer Proposal, to receive a partial repayment (same % as the other creditors) under the Proposal as long as the trustee agrees that you have a valid claim as an unsecured creditor.
      If she does not file a proposal, then you like all the other creditors can try to collect from her legally. If you are asking me if you can get the car back, then no, you are not a secured creditor. You would have needed to file a security claim under the PPSA. I will post a link .
      But she is your daughter, and your relationship will continue after her proposal is complete. And since the balance of the debt is about to be written offer, she may be able to pay you back in the future, not because she would legally have to do so, but she may feel morally obligated.

      http://www.bclaws.ca/civix/document/id/complete/statreg/96359_01#section42

  27. Rick swan 2 years ago

    Hi there my name is Rick and I had a 2013 Mustang that was seized by the bailiff hired by the bank. (I live in BC) I received an intent to sell notice afterwards via registered mail. Since the car was seized ..am I responsible for the repo fees and storage ..etc that was outlined in the letter?

    • Author
      colleen 2 years ago

      Hello Rick
      The fees that a bailiff charges would be part of fee to the secured creditor who is hired the bailiff. You would not be held personally responsible for this fee and would form part of the shortfall. You are in BC so this does not fall to you to deal with but rather reduced the net amount your secured creditor receives.

  28. Michelle McHale 2 years ago

    I had a 2008 Nissan versa that was more then 2/3rds paid off. I lost my job last yr and defaulted on payments so they seized the car. I wasn’t aware of the law that if an item is more than 2/3rds paid off they can’t seize it. Can I do anything about it?

    • Author
      colleen 2 years ago

      Hello Michelle
      Unfortunately, possession is really 9/10th of the law – once they have seized it, I think you are out of luck. Sorry about that.

  29. Adrian 2 years ago

    I have a jeep that I bought in 2013 that I have made bi weekly payments on. Due to divorce, child support, change of employment I can no longer afford to make the payments and live. The amount owing is $42000 and I believe they go at auction now for about $25000 so serious negative equity. I was told by a debt consolidator that if I can’t pay then to do what’s called an involuntary repo. He said stop paying, let them seize the vehicle, take the plates off , hand over the keys and do not sign any paper work. Is this the right advice? What other options would the bank have that might make me have to still pay for the vehicle. I did talk to the bank once and they said they would not refinance.

    • Author
      colleen 2 years ago

      Hello
      I think that the advice you received is pretty sound – take the plates off so you can cancel the insurance and hand over the keys. In BC they cannot sue you for the shortfall so that should not be a concern for you.
      At times banks or collectors try to get you to sign a “voluntary surrender” which means that they are trying to get out of the “seize” part of the law – so you don’t want to sign it. Just hand the keys over and keep the paperwork that they give you for your records.

  30. carl 2 years ago

    i owe 20 000 on a 2009 venza it is probobly worth 15000 i am 66 and having trouble working because of my health will they sieze the vehicle even if it has neg equity or sue me.I can just stop work and live on my gov pension

    • Author
      colleen 2 years ago

      They generally will seize the vehicle if it has reasonable value for them to do so – say over $4,000. It has to be enough to pay for the seizure (say $1,700) and give them some return. They do seem to take into consideration how easy it would be to get paid in full from the debtor (by looking at their net worth etc) but generally I have to say that most times, secured creditors seem to opt for the seizure part ( I would say 80%) of the time.

  31. carl 2 years ago

    i am thinking that i should buy a car for around 5000 and then stop my payments.Also if i keep my credit card up to date will it still be usable.By the way i live in b.c and my gov pension will be just cpp.o.a.s and gis for a total of 1650 a month

    • Author
      colleen 2 years ago

      If your intention is to declare bankruptcy, if you have a car less than $5,000 then it is yours to keep. But if you enter into a contract, such as a purchase contract, with a clear intention to never pay for the car, then it is essentially fraud. These types of transactions are reviewed by Trustees and courts, especially when they occur close to a formal insolvency proceeding date, and can amount to charges etc. I would caution you to think carefully before you opted for something that could be viewed as involving fraudulent intent.

  32. carl 2 years ago

    otherwise i have to struggle and see if i can work for 3 more years which i doubt

  33. Norah 2 years ago

    I understand if my BC vehicle is seized, that I have 20 days to redeem and that the creditor has to keep the car locally in case I can gather the money. If they take it a long way to the auction before the 20 days is up, and I am able to redeem, do they have to bring it back or do I have to pay to bring it back? I have researched the PPSA and there seems no reference to this. I can’t find anything on the internet about it either. Can you tell me anything, or tell me where to look for the information?

    • Author
      colleen 2 years ago

      Hello Norah. Good question. I am not sure of the answer to this as it would involve review of the relevant case law I think . I am not a lawyer and unsure of the minutiae in the statute. I have seen where they charge “storage fees” for seized vehicles which is allowed as well as the other costs of execution which must be paid prior to having the vehicle released from the bailiff. You could always try calling a bailiff’s office. That may be a good place to ask – maybe not the one who took your vehicle though – just to ensure you get reliable information.

  34. Paresh 2 years ago

    Good day, I have a Dodge Caravan 2016 that I just purchased in last Aug. I have quite the negative equity built into this Van, I owe $60,000 but the Van is probably worth $34,000. The reason was for a better bank rate however I’ve been exchanging vehicles every year to two years to build up my credit after being in bankruptcy from 2009. My payments are close to $700 a month and I just can’t afford payments due to financial constraints. My question is if I put a hold on payment via my bank and the Bank Re-posses can I still be on the hook for the negative equity? I was told not to take the Van back to the Bank nor the Dealership.

    • Author
      colleen 2 years ago

      Hello Paresh
      Yes, if you cannot pay for the vehicle the best bet it to stop paying, cancel the insurance and wait for the bank or its representatives to come an “seize” the vehicle. Do not sign any “voluntary surrender” forms as this may jeopardize your claim to the “seize or sue” part of the PPSA. If they seize your vehicle, you cannot be held personally responsible for any shortfall if you live in BC.

  35. Tyler 2 years ago

    What happens to the co signer if the car is reposessed from the buyer in BC. If they seize it does this mean that the co signer is also safe from the sue clause as they seized it?

    • Author
      colleen 2 years ago

      Hello
      Unfortunately, a cosigner is not covered bey the seize or sue rules of the PPSA. The co-signor is agreed to make up the shortfall on the loan no matter what happens to the car, thus, if the debt is not fully realized by either it being paid off or the car being seize/sold, then the your the guarantor are responsible for the short fall

  36. Tania Schell 2 years ago

    Hi,
    The bank has chosen to sue and has filed to the Supreme court.
    Options? please and thank you

    • Author
      colleen 2 years ago

      Hello
      You now owe the debt in full, or you will when/if a judgement is rendered by the court. If you are left with a loan, you technically can now sell the car free of any legal liens. If this leaves a significant shortfall then you can try to enter into repayment terms with the creditor (maybe pay it off over time) If you sell the car, you can opt to put the sale proceeds towards that debt. If you do not feel that you can pay the debt back in full, or would struggle with those payments, then you do have the option of declaring bankruptcy or entering into a formal repayment plan called a consumer proposal. If the car is worth less than $5,000 then it is an exempt asset and cannot be seized by anyone else and would be yours to keep, free of any liens, in a bankruptcy or a proposal.

  37. shell 2 years ago

    Hello, I just finalized a dept proposal and now I’m trying to get rid of a car I pay hugely for. Its only 8 months old and I’m financing it but I have a $28000 dept owing on top of the value of the vehicle from trade ins. The vehicle is worth $40 000 as it sits right now and I owe $67000 total. Do you think I have a chance to be sued if I stop making the payments? Im terrified! And if they do sue.. How do I come up with the money if I have already don’t a dept proposal. I just want it gone, I don’t know what to do if i get sued. Dont they require the money instantly or they garnish your wages?

    • Author
      colleen 1 year ago

      Sorry for the delay in responding. I think that it is most likely with the value of the vehicle they will opt to seize it – but no guarantee. If this issue was resolved, I would be interested in how it turned out as this question comes up quite frequently.

  38. Last Straw 2 years ago

    I lost my full time job in BC and have sunk badly in debt from everything credit cards, bank loans, vehicle loan, mortgage etc. I have no will anymore to dink around with calling creditors, banks or bothering with filing for bankruptcy. Since I am pennyless, not working and have no inclination of even bothering to sort through this mess, what will happen? Criminal charges? Thanks.

    • Author
      colleen 1 year ago

      Hello Last Straw.
      If you have no ability to pay your creditors, (no income, no assets) then there is nothing much that they can really do. You are essentially “creditor proof”. I see this quite often with seniors who retire on their pensions with no real assets but significant credit card debt. If at some point in the next couple of years you find a new job etc., it may be that they will ramp up their collection efforts and try to garnish your wages or seize other assets that you acquire, you may want to consider a more formal solution to any outstanding debts that you may have.

  39. Janelle 1 year ago

    I had a vehicle siezed in July. I was not at the residence when the tow company came to get the vehicle. I did not sign any surrender or seizure paperwork. The vehicle was not insured and it was cleaned/empty. It has been almost 4 months and I have no heard from the bank bus mail or phone. I figured they wrote off the debt. But when I did a credit check I noticed that the bank got $15000 for the vehicle at auction, and sent the remaining owing to collections. Does this mean that they didn’t consider it a seizure? Can this collections agency garnish my accounts? How can I fight them?

    • Author
      colleen 1 year ago

      Hello
      Well, if they seized the vehicle, then the cannot sue you. It may be just a matter of routine that they send you to collections. To be clear, they can try to sue you and for sue they can try to collect from you, but what you have is a legal defense. So, if they try to sue you (like send you to collections and the collection agent calls or trys to take you to court) then you defend yourself by citing your right to seize or sue. All the courts in BC will agree with you and thus you are safe from legal action, although you may have to defend yourself. Think of it like a very powerful shield in a video game; someone can always take a swing at you, you cannot stop that, but what you have is an impenetrable shield. You should make sure though that you have some sort of legal documentation to defend yourself to prove that is was seized. Under law they were required to give you notice before they sold the vehicle so that may be a place to start to look for proper documentation.

      If you liked the response, please post a review on Google – it really helps our ratings.! Thanks

  40. Cherie 1 year ago

    Hi
    I have a 2011 Nissan Rogue since 2015, td bank kept taking extra payments out in June 2017 & its completely messed up all of my other bills making nsf go over $400. Since then I’ve had trouble catching up, even though they let me skip a months payment to catch up.
    (I broke my knee & missed 6 weeks of work, then where I was working shut down so it took a little while finding a new job),
    If they take the car, will that mess up my credit card & getting another car in December when things have financially settled down again?
    Any advice would be very much appreciated.

    • Cherie 1 year ago

      (They let me skip a month only because they knew the messed up by taking too many payments out, but took them a couple months to pay back the nsf fees.)
      So how does it work when td bank messed up & im still dealing with it, where I can’t afford it, before they did that, I was always paying on time.

    • Author
      colleen 1 year ago

      Sorry for the delayed response. I would suggest that you deal with the bank to the best of your ability. It is an unfortunate circumstance in that they have really messed up your cash flow. I would suggest dealing with them the best that you can as you are somewhat at their mercy. It may be that you have legal claim that they took money that they should not have, but in the end, as long as it all balances out, if they haven’t ‘taken more than owed, you do not have much recourse. You could take them to court I guess, but that would take a very long time and again, hard to get justice if what is really the issue is corrected over time. Or indeed, once you get to court it would be too late.

      If you liked the response, please post a review on Google – it really helps our ratings.! Thanks

  41. Amanda 1 year ago

    Hi there… So my ex and I have been financing a 2012 caravan which we still owe 19000 on… We have since seperated and I have the van .I am unable to make the payments by myself.. I moved from ontario to BC and I am womdering now what will happen if I choose not to pay the monthly payments? Will I be under BC laws or ontarios? And also I am the cosigner not the main owner…can you help me i dont know what to do? Can I sell the van ? Help !!!

    • Author
      colleen 1 year ago

      Hello
      Unfortunately the seize or sue laws in BC does not pertain to guarantors. Sorry to bear the bad news for you. How much is the Caravan worth? If it was sold, what would be the shortfall? On the second point, although does not really help if you are simply a guarantor, if the vehicle is registered in BC, then BC rules apply. There is some variability depending on how long you have been is BC, but it is not a a huge amount of time.
      If you choose not to pay, then the secured creditor would attempt first to collect from your ex-spouse (by trying to seize the car, and/or suing him) . If he is unable to pay, and thus in default, they are then within their rights to come after your for any such debt. If they do that, you can always sell the van and use it to pay some of the debt back. 🙁

      If you liked the response, please post a review on Google – it really helps our ratings.! Thanks

  42. Gloria 1 year ago

    Hello Colleen, Thanks for all of this great insight.
    I am in a situation that I didn’t see here. Due to a business partnership, I bought a 2016 Jeep in March of 2017. The partnership and business are no longer operating and I don’t want this vehicle anymore. I understand the seize or sue in BC, where I live, when stopping payments. What I am unclear on is, if I own a real estate property with some equity in it, am I more likely to be sued? The Jeep is in near perfect shape, I can detail it and have it gleaming when they repo it. There is solid value in it, so I would think they would just seize it. But if I get sued because I have land, that will suck. Do you have any insight on this situation? Thank you in advance!

    • Author
      colleen 1 year ago

      Hello. Well it is hard to say and usually depends on the value of the vehicle and the differential between the vehicle value and that of the debt. i.e. if you owe them $25,000 and the vehicle is worth say $20,000, then they will most likely just come and seize it. However, if you owe $60,000 and the vehicle is worth $5,000, then they may opt to sue. It really depends on the secured creditor. If your vehicle has value, and it sounds like it does, and it is in good shape, it is generally the case that they will just come and take the vehicle. If they sue you, you are free to sell the car and use the proceeds to pay down the debt.

      If you liked the response, please post a review on Google – it really helps our ratings.! Thanks

  43. Dylan 1 year ago

    HI colleen,

    I was just contacted by a bailiff regarding a debt from around 10 years ago that I have not acknowleged for around 7 years it is not on my beuro, the debt is for $25000 to bmo. a few months ago I went and financed a used car and now the bailiff is talking about taking further action on my old debt. My question is can they take my car? Can they put this debt back on my beuro?

    • Author
      colleen 12 months ago

      Hello
      The seize or sue part of the BC PPSA relates to vehicles in BC and debt registered against that vehicle under the BC Personal Property Security Act. If you borrowed money from BMO to buy a car, then BMO may have made you sign a form (security document) which allows them to register they debt against the car so that if you do not pay the debt, they can seize the vehicle. Other creditors cannot simply become secured creditors against a specific asset without your permission (signing of the security document). They can SUE you in court and get a Judgement which then can be used to seize some of your assets like a bank account or a vehicle etc. There are some assets in BC that are protected from seizures under the BC Court Order Enforcement Act This is a link to a brochure from the BC Courts which outlines which assets cannot be seized. A vehicle up to $5,000 in equity cannot be seized by a Judgement creditor.
      For the old debt, from what you has said, it appears that they cannot go to court and get a Judgement against your (as it is too old), but they can still post the attempts to collect the debt on your credit bureau – these are two distinct issues.

  44. Karen 1 year ago

    Hello there,
    I purchased a Nissan rogue in February 2016 with the Nissan finance company. Unfortunately both my husband and I lost our jobs, he was laid off and I had to quit due to health reasons. We have not been able to make the car payments and we thought the finance company would come and take the car back. It has been sitting in our driveway cleaned out for the last 5 months but we have not heard anything from them. How long does it usually take before something happens? Does this sound like they are going to sue us?

    • Author
      colleen 12 months ago

      Hello Karen
      Yes, the secured creditors can take their sweet time picking up cars. I once heard a story from someone in your situation that was frantic because they were waiting months for the secured creditor to come and get the vehicle. They became increasing worried as they were preparing to move and would be forced to put the unlicensed vehicle on the street and they knew that any unlicensed vehicle would be quickly ticketed and towed by the police. They informed the secured creditor of their impending move and the unfortunate likelihood of the car being towed (and thus the secured creditor would have to pay for the tow and storage fees if they wanted the car back). I guess that this information motivated the secured creditor to quickly come and get the vehicle to avoid additional charges. Good luck with this situation.

    • Author
      colleen 12 months ago

      Hello
      Yes, I know that sometimes secured creditors can take their sweet time in coming to pick up secured vehicles!
      I heard a story once that someone in your situation was frantic because the secured creditor had taken months to come and seize the vehicle. To make make matters worse, they were preparing to move and knew that their only choice was to park the unlicensed vehicle on the street knowing that unlicensed vehicles would be quickly ticked and towed by the police. They informed the secured creditor of this likelihood of the vehicle being towed ( and thus the secured creditor would have to pay for the tow charge and storage fees if they wanted the car back). This information motivated the creditor into action and they came to pick up the car before the debtor had to move it to the street! Good luck.

  45. Matt 1 year ago

    Hi There, I leased a vehicle which I still have 15 months on the term. It was leased in B.C but now I have moved to the US and have recently married and we are expecting our first baby. I have continued to make all payments but now with us having 2 vehicles and a baby on the way we can not keep up with the payments. there’s about $9,500 owing on the lease. What would be my best option considering I am no living in the US with no intention on moving back to Canada anytime soon? Voluntary Repo maybe? could they sue me if I live out of country?

    • Author
      colleen 1 year ago

      Hello. Yes, the creditor has the right to try to get their vehicle back. I am not clear about how the PPSA law applies when the vehicle no longer resides in BC or Canada. Generally, if you move provinces, then the new province rules will apply. Extrapolating this to your move to the US, I would think that the BC PPSA rules no longer apply to you and thus you cannot avail yourself of the seize or sue rules. Given that you are in the US I would assume that the creditor in question would just try to sue to and have it certified in the US but it will depend on the sophistication of the creditor. If you can get the car back to Canada and BC and then have the creditor come and get it, it may save you some money and headache over time.

  46. Zac 1 year ago

    Hello
    what are my options if the lender has already seized the vehicle. Can I walk away from the loan or do I have to pay the loan and loss my vehicle?

    • Author
      colleen 1 year ago

      Hello
      If your vehicle has already been seized then the secured creditor will sell the car and get what they can for it. If there is a shortfall, because the creditor seized the vehicle they cannot sue you for any shortfall.

    • Author
      colleen 1 year ago

      If your lender has seized the vehicle they will then not be able to sue your for any shortfall – yay!

  47. Saad 12 months ago

    I got a car like 10 days ago amd the dealer do not want it back. He is giving me so less price for the vehicle. What is the likely possibility that back will seize or sue me? Also I am not canada resident so are there any laws imposed on me?

    • Author
      colleen 12 months ago

      Hello
      The rules relate to all vehicles registered in BC. The seize or sue relates to all vehicles. I think that it is very likely that the creditor will take the car back if you have just bought it. Call them and let them know that you have changed your mind. I also think that there is “cold feet” legislation with respect to car purchases so you can rely on that as well. Do not sign any voluntary surrender forms though as you do not want to be responsible for any shortfall.

  48. Saad 12 months ago

    So what does it mean if the sue me?

    • Author
      colleen 12 months ago

      Hello
      “Sue” relates to a court process where a creditor sends you a piece of paper, called a “Notice”, and this piece of paper outlines the action that the creditor would like to have happen (“relief sought”) with the help of the court system. Generally creditors want to go before a judge at the court house to have the and have the judge agree with the creditor that you owe them money. This is called a “judgement”. Once the judge has given out a judgement, the creditor can do various things with this judgement like use it to garnish your wages or seize some of your assets. This is a separate court process generally but it starts by a creditor going to the court to have a decision, or judgement, saying that you owe your creditor money.

  49. Nav 11 months ago

    Hi
    So my car was just seized 2 days ago because i was behind payments worth $1000. So i just wanted to know what will happen now.
    Will i be able to get the car back?
    Thank you

    • Author
      colleen 10 months ago

      Your best bet it to talk the Secured Creditor. It is up to them at this point. If they are going to sell the car, they have to let you know. Best bet is to check with them. You would certainly have to bring your payments up to date and possibly pay a further “seizure fee”.

  50. Ryan 8 months ago

    Hello. I have come to the conclusion I must get rid of my vehicle as I can no longer afford the loan payments. I am a bit intimidated by the whole repo process and want to make sure I play all my cards right so I dont owe any money in the long run.
    I would appreciate advice on what to do. Should I stop making payments and force the banks to pickup the truck? And if so what exact steps should I take to make this process easiest and no risk to me financially. Or should I call the banks and tell them I would like to surrender the truck and go through their process of a voluntary surrender?
    Thank you!

    • Author
      colleen 7 months ago

      Hi Ryan,

      To be clear, a voluntary surrender is not technically a seized vehicle. It is my understanding that there is a legal difference between seized vs. surrendered. You want the vehicle to be seized – so you don’t want to execute a voluntary surrender. Quite often creditors will ask you to sign a voluntary surrender form which we suggest that you do not sign.

      Sometimes, you can get the secured creditor to go more quickly by stopping all payments to them and phoning them to tell them you will not make any more payments. Generally, this spurs the creditor into action. However, if they come and ask you to sign a voluntary surrender document, you do not have to sign. signing will waive your rights to access the seize or sue under the Personal Property Security Act rules.

  51. Julia C 8 months ago

    Hello, I bought a new 2012 chevy cruise vehicle, and have paid approx. 500.00/month up to May 2018. The vehicle is not drivable now, and needs repairs–a clutch , oil leaks, and the heat, and air conditioning is shot., and a couple of other misc. $11,000 is still owing, and would like to hear your perspective, or advice. Thank you, J.C.
    ps. I have paid for the vehicle approx. 3 times over to date.
    I am thinking of putting parking insurance on it for now, and hope
    they will repo it. Vancouver area b.c.

    • Author
      colleen 7 months ago

      Hi Julia

      Even if a bailiff is appointed to seize the vehicle, they may still change their mind once they get there if they determine that the vehicle has little value. The big thing is to be communicative with your secured creditor in the hopes that they will seize the vehicle. However, given the issues that you stated, it may be that they opt to sue you. Under Section 67 of the BC PPSA, if the secured creditor returns the seized goods to you within 20 days of the seizure, the debt is revived. So, there is a bit of a waiting issue here.

      If they sue you, you can sell the car ( for parts??) , and either pay the debt down as you can, or you could file a consumer proposal to compromise the debt or any other debts you may have. Hopefully, this turns out well for you.

  52. Geoff 8 months ago

    Hi there,

    I had my financed car repossessed. I was given a couple of credit cards at the time of my auto loan that was guaranteed by the car itself. WOuld the credit cards be a loan unto-themselves or would they fall under the same seize or sue guidelines (Vancouver, BC)?

    Thanks,

    Geoff

    • Author
      colleen 7 months ago

      Dear Geoff,

      I’ve never actually heard of that – interesting question! I would hazard to guess that the credit cards themselves although “part of the car loan process” may not really be a secured debt, meaning that they would not follow under the seize or sue guidelines. I would suspect that although they may have told you that the credit cards are attached to the car, in order for the debt to be technically “secured”, they may have to register that debt against the car under the Provincial Property Security Act. Because it is a revolving type of debt, I think that it is probably not a secured debt – so it would probably be a unsecured debt like any other Visa card. If it is a secured debt, then it would seem reasonably that it could come under the seize or sue rule – but as I say, I have not heard of this type of credit card debt.

      My suggestion to you is that you run a Personal Property Security Act Registration search to see if anything was run up against the vehicle. That PPSA search is available for a small fee on-line, or with a Licensed Insolvency Trustee or your lawyer.

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