Car Loan Debt Relief
Vehicles can be a big expense, particularly when they require upkeep, and it often takes years to pay off a car loan fully.
But vehicles are also essential for many Canadians — for work, family, and daily life. But when car payments become unmanageable, the pressure can feel relentless. At Spergel, we understand how overwhelming this can be, and we offer trusted, compassionate car loan debt relief options to help you regain control.
How Do You Deal With Car Loan Debt?
If you’re starting to fall behind or worried your car loan payments are too high, it’s time to take a step back and review your finances.
Begin by understanding your vehicle’s current market value and comparing it to your remaining loan balance — this is key to identifying if you’re at risk of owing more than your car is worth.
From there, calculate how much you’re spending on loan payments, interest, and upkeep — and see how that aligns with your income. If your loan is no longer sustainable, car loan debt relief programs can help prevent further financial strain. Our Licensed Insolvency Trustees are ready to walk you through your options:
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Call Us During Business Hours
When you call, you will be connected with one of our Licensed Insolvency Trustees (LITs) during our regular business hours.
Toll Free: 1-877-557-7367
Monday to Friday 8am – 7pm EST
Saturday 9am – 4pm EST
Sunday 10am – 5pm EST
You can also reach us at one of our office locations phone numbers. See our list below on this page.
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From your phone, you will be connected with one of our Licensed Insolvency Trustees (LITs) during our regular business hours.
Monday to Friday 8am – 7pm EST
Saturday 9am – 4pm EST
Sunday 10am – 5pm EST
Not during office hours? Use our Chat on this page 24/7 and get connected for answers and live chat later.
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Sometimes a simple email is the way to get things rolling.
Expect a reply from us during our business hours:
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Sunday 10am – 5pm EST
Click the button below to reach or use our email address:
hello@spergel.ca
How Much Could You Save?
Use our Debt Calculator to see how much debt relief you could get through a consumer proposal — it could reduce your debt by up to 80%.
voluntary / involuntary repossession
What Is Vehicle Repossession?
Repossession happens when you’re unable to keep up with your car loan or lease payments.
If you’re behind, your lender may take back the vehicle — this is called involuntary repossession. You also have the option of voluntary repossession, where you return the car before it’s seized.
What many people don’t realize is that repossession doesn’t erase your debt. After the car is sold at auction, any shortfall — plus penalties and late fees — becomes unsecured debt, meaning you still owe it. If you’re facing repossession or have already lost your vehicle, reach out to one of our Licensed Insolvency Trustees to explore car loan debt relief options and protect your future.
What can I do before I lose my car involuntarily?
You have more options than you think. If you’re behind on payments or the debt is simply too much, here are a few paths to consider:
You may be able to transfer your loan to another person by selling your vehicle. However, this depends on your lender’s approval and the new borrower’s ability to pay, and you’ll want to ensure you’re fully released from responsibility.
If payments are unaffordable, it may be less damaging to voluntarily return the car rather than face collection calls and legal action. Keep in mind, this will affect your credit rating, but it’s sometimes the first step toward financial relief.
Negotiate a new payment plan
Many lenders are open to modifying your loan, whether that’s reducing your interest rate, extending the loan term, or accepting a lump-sum partial repayment. This can ease your monthly burden and help you stay on track.
If your car loan is part of a larger debt issue, it’s time to get professional advice. Our team at Spergel will walk you through debt relief for car loans, and tailor a plan to protect your vehicle and your peace of mind.
Ready to Get Out of Debt? We Can Help You Get There — Guaranteed
Book a talk with a Spergel expert, and let’s figure out your next best move to become debt-free.
debt help options
What Are My Options After My Car’s Been Repossessed?
Even if your vehicle has been taken back by the lender (or you know you won’t be able to keep up with your payments), you still have legal ways to resolve the remaining debt:
Consumer Proposal
A consumer proposal is a legally binding agreement, filed by a Licensed Insolvency Trustee, that lets you repay a portion of your debt through one manageable monthly payment.
Details
In fact, it’s one of the most effective tools for car loan debt relief in Canada, especially if you’re still paying off a balance after repossession. You’ll keep your remaining assets, avoid bankruptcy, and gain immediate protection from creditors and wage garnishments. This option works well if you have a steady income but can’t keep up with multiple debts. Your trustee will explain your options and guide you through every step with care.
Personal Bankruptcy
When other options aren’t enough, bankruptcy can provide a full reset. It clears most unsecured debts — including leftover car loan debt — and offers immediate protection from collections.
Details
Filed by a Licensed Insolvency Trustee, bankruptcy involves surrendering non-exempt assets in exchange for debt forgiveness. Most people are discharged within 9 months, allowing you to move forward. Your trustee will ensure the process is as clear and stress-free as possible.
Let’s Talk About What’s Right For You
Let’s review your payday loan debt together and see what your options are. Book a free consultation and talk to one of our experienced trustees — with zero pressure.
What Real People Are Saying
Read honest feedback from Canadians we’ve helped find relief, peace of mind, and a fresh financial start.
where to start
What’s the First Step Toward Car Debt Relief?
The best place to start is by talking to a Licensed Insolvency Trustee near you.
They’re the only professionals in Canada legally authorized to administer both consumer proposals and bankruptcies, along with all other forms of debt relief solutions. At Spergel, you’ll never be passed from person to person. You’ll work with a dedicated trustee who understands your situation and helps you make a plan to move forward. Whether you’re behind on payments or worried about repossession, we’ll provide the tools and support to regain control and keep your life moving.
Everyone’s Situation is Different. Let’s Talk About You.
Book a free call with Spergel today, and we will make a plan with you on how to help.
General faq
Have questions about car loan debt? We’ve got answers
Can I get car loan debt relief without losing my vehicle?
Yes, in many cases you can. Options like a consumer proposal allow you to restructure your debts — including car loan debt — while keeping your car, as long as you can continue making the required payments.
What happens if my car is repossessed?
If your car is repossessed, the lender will usually sell it and apply the proceeds to your loan balance. Any leftover amount becomes unsecured debt, which can still be included in a car loan debt relief program like a consumer proposal or personal bankruptcy.
Is a consumer proposal better than bankruptcy for car debt relief?
A consumer proposal is often a better first option if you want to avoid bankruptcy and keep your assets. It allows you to repay a portion of your car loan debt through affordable monthly payments, and stops collection calls and legal action immediately.
Can I consolidate my car loan with other debts?
You can’t consolidate secured car loans, but you may be able to roll leftover car debt (like a shortfall after repossession) into a debt consolidation loan or a consumer proposal if it’s now unsecured. A Licensed Insolvency Trustee can help explain what’s possible based on your situation.
What should I do if I can’t make my car loan payments anymore?
If you’re struggling to keep up with car loan payments, don’t wait until you’re in default. Reach out to a Licensed Insolvency Trustee near you — they’ll review your finances, walk you through car loan debt relief options, and help you avoid repossession if possible.
Real Canadians. Real Success — Like Sarah
“In just three months, tracking my spending became a game-changer. I thought I was budgeting well, but the reality was eye-opening. Spergel helped me realize that the ‘small’ purchases were adding up. Thanks to their guidance, I saved $600 in just two months!”
– Sarah, Ontario
Sarah’s Story is just one of many
Sarah’s journey from budgeting confidence to financial awareness showcases the power of detailed spending tracking. Discover more Success Stories of Canadians we’ve helped, or reach out to us so we can help you.
Let’s Talk About Your Car Loan Debt Relief Options
Don’t wait for the situation to get worse. Book a free consultation today and find out how Spergel’s trusted car loan debt relief programs can help you protect what matters most.
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