Installment Loan Contract With Consumer Proposal In Riverside
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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.
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.
A consumer proposal does tend to have a negative effect on your credit score rating. However, the negative effect is less drastic compared to bankruptcy. If you're unsure whether you need a consumer proposal, look into other options like debt consolidation or credit counselling.
The total amount of debt owing, excluding the mortgage on your principal residence, must be less than $250,000 in order to qualify for a consumer proposal.
You can keep credit cards when you file a CP so long as you have no balance on them on the date your CP is filed.
The purpose of a consumer proposal is to allow you to negotiate a revised payment plan with your creditors. By forgiving a significant chunk of your debt (in some cases, up to 80%), your payments shrink considerably, giving your budget some much-needed breathing room.
The maximum that you can owe as a single person and still qualify for a consumer proposal is $250,000. Married couples who file their income taxes jointly, however, can owe up to $500,000. You can get specific guidelines for each province and territory with these consumer proposal guides linked below.
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.