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Credit Proposal Balance Payment

If I have a balance of $12,000 left on a creditor proposal that started at $40,000 is there anything preventing me from obtaining a bank loan with a co-signer in order for me to pay off the 12K balance?

Posted from: British Columbia

One Response to “Credit Proposal Balance Payment”

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

No, there would be no problem with this. You are able to pay out the balance of your consumer proposal at any time without any sort of penalty.

The other side of this is that because it is a loan that you will be paying on and because the consumer proposal is finished sooner, you will be rebuilding your credit more quickly.