Short Answer

If you have a shortfall on a vehicle, then yes, this can be included. (If your vehicle has been repossessed or you wish to surrender it.) However if you are up to date and remain in good standing on your vehicle payments, and you wish to keep your vehicle you would not include your vehicle in your proposal.

Longer Answer

When you file a consumer proposal in Alberta, you can keep all of your vehicles, regardless of how much they are worth or what is left owing, provided you are making the payments and not in arrears on financing or lease payments.

A consumer proposal does not include secured debt, like vehicle or lease payments, so you can keep your vehicle if your loan payments are in good standing, and you keep making all your payments. If however, your vehicle is worth a lot less than the amount you owe or you have rolled over previous balances into this car loan and are paying thousands of dollars more than the vehicle is worth, a proposal is an ideal time to get out from underneath this additional debt. You can return the vehicle to the dealership or financing agency and include any outstanding balance in your proposal and purchase another vehicle (before filing the proposal) and eliminate all of that additional debt.