Consumer Proposal Truck Lease

March 25th, 2014 by Questions

Hello, I am considering a Consumer Proposal.

I am in debt $55,000 and I am trying so hard to work overtime however it is to much and I am do not have any money. I need help but I have a problem, I want to do a Consumer Proposal but I am currently leasing a truck that the lease expires September, 2015. When it is time to re-negotiate will the company refuse to re-negotiate my lease although I have never missed a payment. I think they do a credit check and so they may see I completed a creit proposal thus I am not sure what to do.

If this is true and they don’t want to renew my lease should I wait until after the lease renewal to complete a Consumer Proposal I don’t know if it will be better but I need help how to proceed.   Any suggestions, anything. Please!

Posted from: Ontario

Questions

One Response to “Consumer Proposal Truck Lease”


March 25, 2014 at 8:19 am, Doug Stuive, CA | Trustee | CIRP said:

It is difficult to know whether the consumer proposal will affect whether or not the finance company will renegotiate the lease on your truck. In general, consumers in proposal have been able to finance and lease vehicles during their consumer proposal. However each company has different policies and procedures for approving financing. I can say that if you keep your lease payments up to date, and always have your chances of re-negotiating are better.

The other thing to consider is whether you can continue to service your debt payments on the $55,000.00 you currently owe. As your credit situation gets worse, you many not be in a position to refinance your lease in 2015 because your debt ratio will be too high and if you fall behind your credit rating will be in jeopardy.

It is a good idea to come in and speak with a licensed Trustee to go over the pros and cons of filing a consumer proposal specific to your situation so that you can make an informed decision.

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