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Applying for credit

If you haven’t yet paid what an accepted proposal states…can you still apply for credit? I was told by Wells Fargo, that it was a breach of a proposal to seek a loan if the proposal amount wasn’t paid.

Posted from: Ontario

One Response to “Applying for credit”

A licensed trustee said...

There is no such restriction in the bankruptcy and Insolvency Act. Unless your trustee has placed such a clause in your proposal (which is possible, but not normally done) then you may apply for credit if you so desire.

Every time you apply for credit and are denied will be displayed on your credit report – before you formally apply anywhere else you should infomrally ask them what the chances of approval are (due to your proposal) – my guess is they will tell you not to bother because you are not likely to be appreoved while your proposal is still in place (or for that matter for at least a year or two after it is done).