How to file a Consumer Proposal and keep your Car

When you file for a consumer proposal, can you add your car loan? And if you do, do you lose your car that is financed? And how long does it affect your credit?

Posted from: Ontario

One Response to “How to file a Consumer Proposal and keep your Car”

A licensed trustee said...

If you want to include your car loan in your consumer proposal then you must first surrender the car back to the lender. If you want to keep the car then you need to continue to pay for the car.

While you are in a consumer proposal the debts that are included should be rated at an R7 on your credit report. When you complete the proposal there will be a note to that effect in the legal notes section and it will remain in place for up to three years. To find out more, spend some time on either Equifax or Trans Union’s websites – these are the two largest credit reporting agencies in Canada.