Numerous Canadians sign up for a consumer proposal as an option opposed to declaring bankruptcy. Going into a consumer proposal permits a person to restructure their debt in such a way that they will be able to better pay them down.
What is a Consumer Proposal?
A consumer proposal is a legal agreement produced by a bankruptcy trustee to arrange payment to your creditors. This alternative can allow an individual to lower payments and eliminate any personal debt within five years. A consumer proposal is a great opportunity for those in a less than perfect financial scenario.
Before entering into a consumer proposal, it is crucial to determine that it is the right choice for you. In order to efficaciously resolve your debt, you must have a stable income in order to make monthly payments and pay the related fees. If you miss more than two of your consumer proposal payments, it may be necessary to file for bankruptcy. For those whose majority of debt comes from student loans, this option may not be suitable. Student debt can only be considered if you have been finished with your schooling for over 7 years. While a consumer proposal is great opportunity for many, it is not always right for everyone so be sure to do the proper research to ensure you are making the right choice.
Is a Consumer Proposal good for your situation?
There are several implications to a persons’ credit rating profile when choosing a consumer proposal. This causes some to worry about any future repercussions. However, it by no means damages your chances for vehicle financing.
Having reliable transportation is vital to being able to get to work and ultimately stay employed. Many lenders are allowing customers who have taken on a consumer proposal to acquire financing on vehicles. There will usually be stricter guidelines and they will require a dealership to help you find a vehicle that fits the criteria.
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