Bankruptcy - Consumer Proposals. - Canada

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RE: Consumer Proposals.

Postby wopette » Wed Jan 30, 2008 02:15:17 PM

Oh, yikes..

My proposal is an open ended one and I can pay it outright whenever I want. Am I better off to do this? Does reporting start after I've made final payment to the trustee, or after the final disbursment payment is made to the creditors? Trustees do a great job of setting up a proposal, but a lousy job of explaining the "details" involved.

I really appriciate this..Thank you.
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RE: Consumer Proposals.

Postby montyloree » Wed Jan 30, 2008 01:51:02 PM

6 years
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RE: Consumer Proposals.

Postby wopette » Wed Jan 30, 2008 01:47:39 PM

Thanks for the answer..

How long after the final payment on the proposal does it take for it to be purged off your credit report?

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RE: Consumer Proposals.

Postby montyloree » Wed Jan 30, 2008 12:57:20 PM

A consumer proposal gives you R7 rating...
This is not as bad as R9.

R9 means that you've short changed the creditor in part or full of their principal amount. They have to write off a portion of the debt.

Consumer proposal means that you're going to pay the debt, just on a longer time line than what you originally agreed to. In this way, the creditor isn't writing off any of the debt.
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Consumer Proposals.

Postby wopette » Wed Jan 30, 2008 11:58:13 AM

Is a proposal just as bad as a bankruptcy?
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