May 23rd, 2014 by Questions
Is it possible to consolidate debt with a proposal and taxes with my car loan as well….I’m looking for help!
Posted from: Ontario
May 23, 2014 at 12:07 pm, Doug Stuive, CA | Trustee | CIRP said:
A consumer proposal is a great option for consolidating your debt. It stops the interest, provides you with legal protection from your creditors, and allows you to make one monthly payment you can afford. You can file a consumer proposal for loans, credit cards, old bills, lines of credit and yes, even income tax debt. Unfortunately you can not include your car payment in a consumer proposal. A car loan is secured to your vehicle- which means if you do not fulfill the terms of your car loan the creditor will repossess your car.
If you have debts other than your car loan, including income tax arrears, filing a consumer proposal may create enough room in your budget to make your car payments more affordable. You may also choose to return your car to the loan company and if there is any debt left over after they sell your car then you can put that debt into a consumer proposal along with your other debt. You can then finance a vehicle that is more affordable for you.
If you come in to meet with a trusted advisor they will help you look at what you can afford on a monthly basis to see if the consumer proposal makes sense for you and what the best option is regarding your car loan.
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