Car lease and consumer proposals
July 24th, 2008 by Questions
I am currently debating on setting up for a consumer proposal. My husband and I have incurred $50,000 through school tuition, and credit cards. We both have solid income, but cannot meet the monthly payments which are of course only minimum payments. He also has a car loan of $25,000. The lease is up on our other car next July. Will the car loan be incorporated into the consumer proposal? And do you think that I will be able to get financing or leasing for another car next July?
Posted from: Ontario
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July 25, 2008 at 10:44 am, Barton Goth - Goth & Company Inc. - Bankruptcy Trustees said:
The vehicle lease will only be incorporated into the proposal if you return the vehicle and need to be cleared of the shortfall. Otherwise you will continue with the lease as originally contracted.
In terms of trying to get another vehicle, it will be a little more challenging to qualify once a proposal is in place due to the blemish on your credit rating, but at the same time you will likely have cash flow freed up each month that will make it easier to afford the financing. So as you can see it is a catch 22, there are some positive things and negative things that must be balanced by the lender. At the end of the day the best thing is to contact a local trustee and discuss whether or not there are financer’s they are aware of who would be willing to lend in your situation.