Considering a Proposal

I earn about $70000 per year on a single income. I have about $35000 in consumer debt, excluding a mortgage ($208000 – renewal in 2013) and a car lease. If I apply for a consumer proposal for consumer debts, can I still make payments on my mortgage and car lease without fear of losing them? I currently am not behind on any debt or bill payments, I just struggle monthly to pay all the bills and am concerned with the huge amount of interest I am paying. I just want to be able to save for my future. Is a proposal the right way to go? I have already been refused for a consolidation loan due to my high debt ratio.

Posted from: Alberta

One Response to “Considering a Proposal”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

As long as you can afford to pay your mortgage and car lease this is not a problem and will not really impact the filing of a consumer proposal, nor with the filing of a consumer proposal impact your creditors willingness to allow this. Legally no creditor can seize an asset just for the reason that a consumer proposal is filed.

As for the consumer proposal being the right way to go, it is definately a good way to bring your monthly payments back to a level where you can not only afford to make them but also make progress on paying down the outstanding balances but still avoiding bankruptcy, so is often one of the best options when a consolidation loan is not available. I would contact a local trustee right away.