Author:		Anonymous
Date:		June 15, 2008
Question:		I am currently considering bankruptcy. I have a car loan out that was registered to me and is now registered in my gf's name. If I file for bankruptcy, can the bank repo the car from my gf if there is a lien? Also, does this make her 100% responsible for the unsecured loan we have? How is my income affected by a bankruptcy? Will I have to make monthly financial obligations. Please let me know the difference between a consumer proposal and a bankruptcy as I believe financial institutions look at these the same. Thank you.
From:		Karen, Alger & Associates Inc.
Date:		June 18, 2008
Answer:		The bank is entitled to the car and your girlfriend is responsible for the loan if she signed for the loan. The bank could repo the vehicle or allow you to keep it and let you continue payments. If you file for bankruptcy, you must disclose all of your income. There is an income standard or guideline that determines what amount of monthly payments you will be required to make. A consumer proposal offers to make monthly payments to your creditors that will result in a greater return to your creditors than a bankruptcy. Although both programs impact your credit report, a consumer proposal shows the creditors that some repayment was made and should have less impact on your credit rating. Karen Rideout phone: (403) 296-2973   If you wish to talk to one of the Edmonton bankruptcy professionals at Grant Thornton Alger Inc., you can call us TOLL FREE from anywhere in Alberta at 310-8888. After hour appointments at our Edmonton bankruptcy offices are available. Or you can click here to submit a question to the Edmonton bankruptcy Q&A forum