Secure credit agreements such as vehicles give the creditor legal right to seize your vehicle as security, and may sue you for any money left owing, interest, or costs if the security does not cover your outstanding debt.
Creditors must use a civil enforcement agency to seize your vehicle to pay the judgement debt plus interest and costs. When the bailiff seizes your vehicle you will be given a copy of the Notice of Seizure, a Notice of Objection, and a form called Information for Debtor. The bailiff may take away your vehicle or leave it with you under an arrangement called a bailee’s undertaking. If the vehicle is not taken from you it is under the strict condition that you agree not to sell, dispose of, or damage the vehicle.
Once the bailiff delivers you the seizure documents, you have 15 calendar days to give a notice of objection to the civil enforcement agency that conducted the seizure, the notice must include reasons for your objection. Your vehicle then cannot be sold without a court order and you will be notified of the court date for hearing your objection. In the case that you do not file an objection, or make arrangements to pay your debt, the creditor may instruct the civil enforcement agency to sell the seized vehicle through any commercially reasonable manner.
A creditor may not take away the vehicle from you if you can immediately start paying off some of the debt. The creditor may agree to a new payment plan. In general, creditors want to collect the money owed to them as soon as possible, so they prefer not take legal action unless necessary. In most cases, vehicles under $5000 are not seized under Alberta’s Civil Enforcement Act.
Come in to Sherwood Dodge ands speak to our Financing Team. They can help you find the right loan for you, doing their best to ensure repossession is never needed.