Would I be considered in default if my Consumer Proposal gets rejected?
April 8th, 2013 by Questions
I have a couple of credit cards and a line of credit that currently have favorable interest rates. I only have one that is at 22% and the rest are 1.99%, 4%, 10-12%.
If my consumer proposal were to get rejected by my creditors, what happens to these interest rates? Will the creditors consider me as being in default?
I am still able to keep up with the minimum monthly payments but don’t know for how long. Or will it be as if nothing happened and I am still allowed to carry on with my monthly payments?
I know this isn’t the other type of Consumer Proposal (Type II I believe) where I will be forced into declaring bankruptcy.
There is also the risk of the creditors changing these interest rates on me which is why I think going the C/P route is best for my family’s interest.
Posted from: Ontario