Credit Counselling Society of Canada
September 24th, 2005 by Questions
Is using the Credit Counselling Society the same as filing a proposal? I joined with them about 10 months ago, and am starting to have difficulties wth my payments. My common-law husband is not supportive, I was late last month and this month. I owe about $50,000, and am paying $700.00 per month. One of my problems is that I got a secured loan from a finance company, not realizing that the security (a car) is in my husband’s name. Can the finance company seize the car if my payments are late even if the car is not in my name? I would have thought they would have checked into this, but I’m not sure what the rules are.
Thanks for your help.
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September 26, 2005 at 6:43 am, A licensed trustee said:
Credit counselling, also known as a debt management plan, is not the same as a consumer proposal. In a debt management plan your counsellor works out an informal arrangement with your creditors where you pay them back in full over a period of usually two to four years. The plan is not legally binding, meaning anyone can change their mind in the future, and no creditor can be forced to accept the plan.
In a consumer proposal, which can only be filed by a licensed trustee, if a majority in dollar value of the creditors accept it, all creditors must accept it.
The only similarity between the two is that secured creditors, such as a car loan, are generally not part of either type of plan. In your questions the answer is yes, if the payments are not made on the car, the finance company can seize the car.
If you are having trouble making the payments, I strongly recommend that you contact a licensed trustee to determine if a consumer proposal would be a better option for you.