GUYS!! YOU DON'T HAVE TO PAY ANY OF THESE FRAUDULENT DEBTS! Please go to getoutofdebtfree {dot} org

You're welcome
PEACE!

I opted to contact RBC & let them know I could no longer continue pmts. we agreed mutually that a voluntary repo would be best. I had only missed one pmt at this point but did not want to drag things out. The Bailiff came a week later & we had an amicable discussion; he was very nice & came after dark to tow it away (not that I was concerned about "what the neighbours think".) But he was very nice. I tidied up the vehicle & provided the keys/ got a cooy of what I signed noting my giving up rights to the vehicle. FWIW a painless operation. Despite the effects on my credit report I know I did the necessary & right thing.

Thank you SO very much for further explaining this.
I will heed your sage advice.

Repossession laws in Canada are governed by the jurisdiction in which the debtor resides and not by where the vehcle was purchased or financed.

If this vehicle was purchased and financed in Manitoba and the vehicle was registered and plated to an address in Manitoba, then the repossession laws of Manitoba would apply. RBC would then register a lien against this vehicle in the Personal Property Security Registry in Manitoba.

When the vehicle is transferred to British Columbia and is then registered and plated to an address in B.C., the repossession laws of B.C. now apply. RBC would then transfer the lien to the B.C. Personal Property Security Registry and cancel the lien registered in the Manitoba PPSR. Therefore, the Seize or Sue rule would apply.

If you file a Consumer Proposal, you could not include this debt in the CP because it is a secured debt and CPs only provide for unsecured debts. If RBC will not accept a voluntary repossession, then you would have to wait until RBC issues you a "Notice of Claim" to which you would not file a Defence. After 20 days, RBC would then apply to the court in which the Claim was filed for a "Default Judgment". Once a "Default Judgment" is issued, then you can include this judgment in a CP.

If you proceed to file a Consumer Proposal before a "Default Judgment" is issued, you then lose the protection of a CP for this debt and this debt/judgment will now ultimately survive.

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Educating one Consumer at a time

Thank you Footloose I was hoping for a reply!

I just saw a Trustee today about the whole situation. Although humbling, I felt such relief knowing I had options. I dutifully pay all my bills, even if it means I can't afford food or gas or diapers =( It is depressing to admit that I can't make ends meet, but a CP is truly the only realistic option.

I will call RBC and try to make a deal *OR* surrender the vehicle. I already tried a consolidation loan but was denied today. I can only try every other option out there. The truck has been in an accident since purchase (recently). It is worth ~18k or so and the loan/ lien is for 32k sooo I feel like I should add it to the CP (yes no?) and allow the repo of the vehicle. Frankly it is not worth my continued payments.
Appreciate your input and advice.

PS I should confirm this one hairy point: like I stated earlier - this vehicle was bought in Winnipeg but I now reside in BC. Regardless of what the purchase agreement states, are you saying that for repo I am covered by BC sue OR surrender laws? As opposed to the purchase which in MB states sue AND surrender...???

You can only include an unsecured debt in a Consumer Proposal or a Bankruptcy.

Contact RBC and tell them that you are having difficulty in making your monthly payment and ask them if they would consider a voluntary repossession. If they will, they will tell you where to take the vehicle and turn over the keys. That will end all future payments on the vehicle. Once the vehicle is voluntarily surrendered, RBC cannot sue you for any deficiency on their disposal of the vehicle.

If they refuse to accept a voluntary repossession, tell them that you cannot continue with the monthly payments and will have no choice but to seriously consider a Consumer Proposal or make an Assignment in Bankruptcy. If you default on your monthly payments and they refuse to accept a voluntary repossession, then they have no other choice but to sue you. Should RBC sue you and obtain a default judgment, you can now include this judgment in a Consumer Proposal and retain possession of the vehicle. If you were to make an Assignment in Bankruptcy, you could include the judgment in a Bankruptcy but would have to surrender the vehicle to the Trustee who would include it in your Bankruptcy Estate whereby the vehicle would then be sold and the proceeds would then be added to your Estate for distribution to your creditors.

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Educating one Consumer at a time

This is my first post so forgive me if my forum ettiquette is incorrect.
Here is my story, and are my questions...
I have never had credit issues before until this yr. Always have made required pmts (still do) but am up to my neck in debt ($82k incl vehicle loan, personal loan & cards) Cant afford groceries- I sell things on Craigslist to get by. I realize its time to fix this but I need advice. This is new territory. Tomorrow I go see a Trustee about Consumer Proposals and Bankruptcy options.
I own a house but I'm at 81% equity (bought this year)
I own a 2010 vehicle but owe $31k on it (trade in value 22k)
I have a long term good paying job, a 4 mo old baby & a stay at home partner (who I guess could work really part time, but we live in a small rural area, have one vehicle & I am at work 50 hrs/week plus driving time)
No savings, lots of unsecured debt.
My questions are:
-my vehicle pmt is huge ($550/mo) and trade in/ trade down financing isnt an option. I bought this in MB, now live in BC. If I let this get repo'd I could buy a cheap used vehicle(?) The 2010 vehicle has a lien on it with RBC (I dont deal with them other than this loan) I understand in BC its sue or sieze- I dont know what would happen if they sued (?) & certainly cant afford a lawyer. My net worth is $-15k. When do they normally choose to sue and what happens if they do???
-I am in the process of attempting to get a consolidation loan. Failing this if I do a proposal I hear that I can keep the vehicle and house (since theres no value in either) and the first $3100 of income per month is essentially used for household expenses and anything over and above goes to the debt repayment. But I'm still left with this huge vehicle payment monthly (?) I feel like either way I need to get rid of this vehicle.

Advice? Thoughts? Suggestions?!