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Bankruptcy For Car Loans

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Bankruptcy for car loans

Are you facing up to car loan debt? We know it can seem overwhelming, and it can be hard to know where to turn. At Harris & Partners, we have the experience to guide you through the different ways of dealing with your car debt, and help you decide whether bankruptcy is the right way to go. We believe that you should be aware of all the options available to you, as only then can you make a well-thought out decision, and know which one is best for your current and future car finance needs and your personal circumstances.

If you are bankrupt and have to hand back your car because you have fallen behind on payments, or the payment is too much compared to the value of the car, the car loan company debt for the shortfall will be part of the bankruptcy. If the car loan company then sells the car, you would no longer be responsible for the future payments or any shortfall between the sale price and the amount outstanding on your car finance agreement. When you are made the subject of bankruptcy proceedings, you can keep the car so long as payments are current and you plan on continuing to make them.

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Bankruptcy for car loans is not your only option

If you are struggling to keep in control of car debt, you should know that while bankruptcy for car loans is a valid option, it is not the only one available if you find your car loans are becoming too much to handle. Contact us for specialist advice, and to find out more below about consumer proposals for motor vehicle loans and the financing options available for a car outside of an insolvency proceeding.

Harris & Partners can give valuable advice on your car loans

We know that if you are having trouble with car loans, the situation may seem very difficult and cause you stress. However, you do not have to face it alone. We can go through all your options with you, allowing you to make an informed decision on how to deal with your car loans. To speak with a professional regarding your car loans in Toronto, Ontario or on any bankruptcy-related questions and how it could affect your car finance agreements, contact Harris & Partners today at 1-800-268-8093.

For your convenience, we have offices across Canada to offer your advice with any of your financial assistance needs. Click here to find the office closest to you!

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Other Debt Types

Car Loans

Bankruptcy for car loans

Consumer proposals for car loans to you

Alternative car financing options

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Student loans to you

Payday loans

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Browse debt options in Canada

Consumer Proposals

Consumer proposals can be an alternative to bankruptcy that reduces debt and gives you more time to pay back creditors.

Legally stop most collection action
Usually keep your assets
Avoid bankruptcy

Bankruptcy

A last resort when other options won’t work. Some debts, such as support payments and court fines, aren’t released.

Wipe out most unsecured debt
Keep assets protected by provincial law
Support from your trustee throughout

Debt Consolidation

A loan from a bank or lender that combines several debts into one payment.

One payment instead of several
May lower your interest rate
Doesn’t reduce what you owe

Not available through Harris & Partners.

Debt Management Plan

A non-profit credit counsellor arranges one monthly payment to your creditors, usually over up to 5 years.

You repay the full amount owed
Interest may be reduced
Creditors don’t have to agree

Not available through Harris & Partners.

Credit Counselling

Non-profit credit counsellors help you understand your finances and build a budget.

Work out what you owe
Plan a budget
Learn money management skills

Not available through Harris & Partners.

Debt Settlement

Private companies negotiate a lump-sum payment with your creditors, who don’t have to agree. They aren’t Licensed Insolvency Trustees

Not regulated under the BIA
No legal protection from creditors
Fees often charged upfront

Not available through Harris & Partners.

Corporate Bankruptcy

An orderly way to close a company that can’t be rescued. Directors may still be personally liable for some debts.

Orderly wind-down of the company
Assets sold by the trustee
Ends creditor claims against the company

Division I Proposals

For businesses, and for individuals whose debts (excluding their mortgage) are over $250,000. Change the terms of your debt by reducing what you owe, extending the repayment period, or both.

Repay part of your debt over time
Keep your business or assets
Avoid bankruptcy

Corporate Insolvency

Options for a business that can’t pay its debts, from restructuring to an orderly wind-down.

Restructure through a Division I proposal
Protect jobs where viable
We’ll assess every option

Support across Canada

Why choose us for consumer proposals in Ontario?

Remove up to 80% of your debt

Our Licensed Insolvency Trustees can provide a customised consumer proposal that could shrink your debt by up to 80%.

Get debt help

Professional guidance in any language

Our multilingual team offers debt support in Farsi, Portuguese, Italian, Tamil, and more, so you can feel comfortable every step of the way.

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Nationwide support

With offices in nine provinces, we offer in-person debt support across Canada—from Atlantic provinces to Ontario to British Columbia.

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Contact information

It's never too late to obtain debt help. Book your free consultation today

Phone number: 800-268-8093
Email: hello@harrispartners.ca

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   Tania Haney 
 12 November 2026
 
 
 Trustindex verifies that the original source of the review is Google. Harris & Partners so far have been a great help to me personally. I am now able to manage   finances very efficiently.  I would recommend them to any individual who needs help and guidance.
  
 
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   Mike Hayes 
 11 November 2026
 
 
 Trustindex verifies that the original source of the review is Google. Great experience with them. They were very thorough with my consumer proposal, explaining the process to me and helping me with everything. They were able to take a lot of pressure off of me and save me from bankruptcy. I would recommend them if your having financial difficulties and need help.
  
 
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   Kelvin Friesen 
 11 November 2026
 
 
 Trustindex verifies that the original source of the review is Google. Everything has gone good people are friendly no problems
  
 
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   Barbara Ferguson 
 11 November 2026
 
 
 Trustindex verifies that the original source of the review is Google. So helpful and kind, helped me so much.
I would definitely recommend them if you find yourself in debt to credit cards, or money lenders.
Everything went so smoothly, and they took all the worry I had away about the situation I was in.
I highly appreciate and recommend them, it was not stressful, and everyone is so professional.
  
 
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   Guy Provencher 
 11 November 2026
 
 
 Trustindex verifies that the original source of the review is Google. Treated like a real person.
  
 
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   Shaun Dietrich 
 11 November 2026
 
 
 Trustindex verifies that the original source of the review is Google. They were very helpful and easy to work with to resolve issues.
  
 
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   John Paul Boisvenue 
 10 November 2026
 
 
 Trustindex verifies that the original source of the review is Google. Amazing company to work with
  
 
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   broley huxley 
 10 November 2026
 
 
 Trustindex verifies that the original source of the review is Google. Were great to work with got my consolidation loans dealt with fast and have been wonderful when needing information on any issues
  
 
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   Ray St. Jacques 
 10 November 2026
 
 
 Trustindex verifies that the original source of the review is Google. I had a great experience with Harris & Partners while working through my consumer proposal. The team was compassionate, professional, and respectful throughout the process, and they explained everything clearly so I always knew what to expect. Their support lifted a huge weight off my shoulders. I’m truly grateful for their help and would highly recommend them.

Best,
Ray
  
 
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   Marilyn Cox 
 10 November 2026
 
 
 Trustindex verifies that the original source of the review is Google. I’ve had a great experience with Harris and Partners. Great advice so I can get on the right track. I’m very grateful.
  
 
 
  
 
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