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secured debt options

Date: Tue, 08/02/2005 - 20:11

Submitted by anonymous
on Tue, 08/02/2005 - 20:11

Posts: 202330 Credits: [Donate]

Total Replies: 1


i have well over $30'000 worth of debt. $10'000 of which is secured debt. this is my question. if the bank repo's my car is that still concidered secured debt. and question 2 If the repo doesn't happen would i be able to consolidate the amount and make payments through a credit counceling agncy.


Hi snipe

The debt consolidation program consolidates all your unsecured debts only which does not have any property attached to it.

Before the bank repossesses your car, it is considered as a secured debt and cannot be included in the debt consolidation program. This answers the second portion of your query. If you have defaulted in making your payments, the bank will take action by repossessing your car and consider selling it off to recover the amount of your debt. You will be required to pay the balance amount of debt that has not been recovered after the sale of the car and this will be considered as the unsecured debt. This unsecured debt can be included in the debt consolidation program.

Just a detailed information of how the Ministry of Consumer Affairs has guided some rules to be followed during repossession by the creditors.

Once the goods are taken by the creditors, they need to serve a post-possession notice on the debtor and the guarantor. After you have received the post-possession notice, you have 15 days from the day the notice was sent to you to take the following action.
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  • You can reinstate the agreement by paying the arrears and repossession costs and continue your payments, or
  • You will have to find someone who can take over the contract from you, or
  • If you can find someone who is willing to buy the goods from you for cash, or
  • You can altogether settle the total amount owing.


    If you are unable to take any of the following action within 15 days, the creditor has the right to sell the goods. Obtain a valuation of your goods before they go for sale. The sale can be conducted by public auction, public tender or it can be a private sale.

    Within 10 days, the creditor has to send you a notice of your account which will provide the following details:
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  • The amount of the full proceeds of the sale.
  • The cost and the expenses incurred during the sale.
  • The amount required to settle the agreement at the date of the sale.
  • The balance that is owed. It can be either on your end or theirs.


    • lrhall41

    Submitted by ben on Wed, 08/03/2005 - 12:13

    ( Posts: 2034 | Credits: )