all my debts in a consumer proposal
I have credit card debt at about 21000. Also I have student loans at about 8000. I realize the credit cards must be included in the proposal but my student loans are less than a year old (what about the 10 year rule). What affect does this have on them and are they included? Do they get a vote on whether the deal is accepted? Is there a chance they will lower them?
It’s a little complicated.
The student loans will be included on your list of creditors and they have the right to vote for or against the proposal and to receive payments from the trustee.
When your proposal is over, since your student loans will not be 10 years old when the proposal starts, the student loans have the right to collect whatever money you still owe them (in other words, the student loan debt does not go away).
Whether or not they participate depends on the bank -some of them do and some of them don’t. Regardless, the interest on your student loans will continue during the proposal and at the end of the proposal the debt will have to be dealt with.