A READER ASKS:
My wife is exploring filing a consumer proposal. We have checked with four insolvency trustee offices. We’re confused on vehicle ownership, and we are getting different answers.
3 years ago, we bought our second car (currently worth 28k). For insurance purposes, I was already the primary driver on the first car, so I was advised that to make her primary, the car should be in her name. At that time, I went ahead and purchased the vehicle and put it in her name. However, I used MY line of credit and MY account to issue the bank draft. Our mutual understanding was that the vehicle is MINE but i gave it to her to drive to pick up kids from school and stuff, and just put it in her name for insurance purposes. I have a paper trail of using my line of credit and making the payment to Honda. My wife is a stay at home mom with no income other than the Canada Child Benefit and no other assets. I would be funding her consumer proposal.
My question : do we need to declare this as HER asset?
If we were handling your file, we would disclose to the creditors that although your wife is the legal owner of the vehicle, she’s holding it in trust for you. We’d also have your paper trail on file in case your creditors want to verify that you had actually purchased the vehicle with your own money. On this basis, we would recommend to the creditors that they approve your wife’s proposal.