Installment Loan Contract With Consumer Proposal In Contra Costa
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Secured Debts: Secured debts are backed by collateral, such as a home or car. Examples include mortgages and car loans. These debts typically are not included in a Consumer Proposal, which means you can keep the collateral asset as long as you continue to make the payments.
The consumer proposal and all accounts reported as satisfied through the proposal will be removed from your file three (3) years from the date you satisfied the proposal or six (6) years after the date you defaulted on the account, whichever date comes first.
By law, you may miss up to two payments during your proposal term without triggering any consequences. (You'll still have to make the payments, but they'll be tacked on at the end of your proposal term). If you miss a third payment at any time, however, your consumer proposal will be annulled.
What happens if I miss a payment? You are allowed a maximum of three (3) payments throughout the duration of your consumer proposal to creditors. The consumer proposal collapses and annulled by the court. If you miss more than three (3) payments, the consumer proposal collapses and annulled by the court.
Most rejections occur because the proposal terms don't align with creditor expectations. Here are the main reasons creditors may reject a consumer proposal: Payment offer is too low relative to bankruptcy – Creditors expect to receive more than they would if you were to file bankruptcy.
In most cases you can keep any credit cards that do not have outstanding balances — and you may apply for new credit during your Consumer Proposal should you wish to do so. Though, it may be difficult to find a willing lender, and we discourage taking on any additional credit throughout the Consumer Proposal period.
A consumer proposal can only be filed for non-mortgage debt up to $250,000. Bankruptcy has no limit to the amount of debt that can be included, only a minimum of $1000.
When a proposal passes, it forces all general unsecured creditors(with minor exceptions)to settle their claims against the debtor for the amount offered in the proposal. Consumer proposals get accepted in our office “eventually” at a rate of 99% or better.
