cars in consumer proposal
I am thinking of filing a consumer proposal and I have a car loan. I need to keep the car and I plan to continue with my payments. When you file the proposal, is the car loan included, I mean is the lender going to know about this and is there a chance the lender will request the outsanding balance of the loan immediately? How does this work?
Posted from: Ontario
As long as your payments to your secured lenders (like your car loan) are current when you file a consumer proposal then the lender cannot call your loan simply becuase you filed. The law specifically prohibits this.
The lender will be notified of your proposal – they’ll even appear on your list of creditors, but under “secured” which means they are excluded from the process.
Review this subject in detail with your trustee BEFORE you file your proposal.