Can I keep some debts out of my bankruptcy or Proposal?

October 12, 2012 10:11 pm Published by

All debts anywhere in the world must be part or your Bankruptcy or Proposal disclosure Statement. You cannot pick and choose which creditors your Trustee will notify. However, if you have a car loan and want to keep the car, as long as you continue to make your car payment under the terms of your secured agreement with the creditor, then you can keep you vehicle. Secured creditors, like a creditor who has loaned you money to purchase an asset such as a car and has registered the debt against that asset under the PPSA, they do not have their rights under their security affected by you filing for bankruptcy. So, if you keep making your payment, then you can keep your assets. If you fail to make your payments, then the secured creditor can come and take the asset (car) back if it is allowed under their security agreement.