Free Consultation

Can I cancel my consumer proposal?

Recently I submitted a consumer proposal to TD Auto Finance (1 week ago ) I contacted them to surrender my car. Over the weekend I have realized the deal is just not worth it. I will be spending almost as much on taxis etc. as to keep the car …what can I do-I have not even received the form for surrender and would like to still keep the car” can I ? can I back out of this or is it too late?

Posted from: Ontario

One Response to “Can I cancel my consumer proposal?”

Doug Stuive, CA | Trustee | CIRP said...

An individual can withdraw their consumer proposal within the first 60 days of filing the proposal. This would mean that the debt would be collectable again, with interest charges added for the period of time since the consumer proposal was first filed.

Whether TD Auto Finance would allow you to keep your car and continue your loan payments is up to them as you have already indicated your decision to surrender the vehicle. I would highly recommend that you contact TD Auto Finance first to make sure that they will agree to allow you to keep your vehicle and keep your payments up to date before you withdraw your consumer proposal.

If you have other debts that will be a problem for you to maintain, particularly while you are maintaining the car payment, I would recommend that you speak to the Trustee that was handling your consumer proposal about your alternatives.