consumer proposal or debt settlement

I have credit card debt of $6500.A line of credit of $12000.A car loan of $21000.I am wanting to do a consumer proposal or debt settlement on the line of credit and credit cards.I don`t want to do it on the car as that is something that is budgeted in my monthly payments and I don`t want to loose my car.My problem is that my line of credit and car loan are with my current bank I deal with.How would putting the line of credit on either things affect my relationship with the bank.I am in desperate help as my hours at work has been reduced and I am not naking what I made before.Thanks.

Posted from: Alberta

One Response to “consumer proposal or debt settlement”

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

Firstly you will find that there aren’t many debt settlements done in Alberta. This is primarily becasue in Alberta you can use the orderly payment of debt (OPD) program and it accomplishes the same thing, but in a fashion that is more secure. Of course a consumer proposal will also work, although and interesting thing is that the proposal is typically less expensive than a debt management plan / or OPD and they all end up with the same impact on your credit. So there isn’t a great deal of incentive for a debt management plan or the OPD route.

As for not including your car loan, this is is very common. Because the vehicle loan is considered secured, you don’t have to put it in and there will be no impact on the vehicle.