conflicting Information
can you apply for credit during a CP? some people say yes, some people say no. I’m in a CP right now, was advised to do a lease on a vehicle, but would like to change the lease if possible to loan but really not even going to bother asking if i am not allowed to do this.
What happens then if a person applies for credit while on a CP, does the trustee get a notification on this.
The place i did my CP, the person i worked with is no longer with the company and i can’t seem to get past the secretary at the front desk to talk to someone one else.
Posted from: Ontario
There is no prohibition against applying for credit in either a proposal or a bankruptcy. In a bankruptcy you are required to disclose to anyone extending you credit in excess of $1,000 that you are an undischarged bankrupt – there is no such provision for proposals.
Having said that, from a practical standpoint, it will be very difficult to get approval from a lender at a reasonable interest rate for new credit if you are already in a proposal. A co-signer will help and certainly collateral worth well in excess of the loan that may be used as security is good too. Just don’t be surprised if the interest rates you are offered are ridiculous…