Can you get a Car Loan approved if you are in a Consumer Proposal? Yes, Auto Loans while in a proposal are available through a few lenders.

If you do not know about consumer proposals, here is a basic breakdown of how it works: When an individual is very deep in debt and cannot keep up with their payments, they might enter into a Consumer Proposal. What this means is that they go to a bankruptcy trustee who contacts all their creditors (the companies that money is owed to) and he negotiates a deal where they accept a partial payment or they agree to stop charging interest on the debt. An example would be to inform everybody that the client can no longer meet his or her financial obligations and that if they want to get paid, they must stop charging interest on the debt. Normally, a proposal is a 3 or 4-year plan to pay everybody off.

In the eyes of a bank, a proposal is the same as bankruptcy. Many lenders will not deal with a person in a Consumer Proposal unless they are half way through or further. The reason for this is that many people involved in a proposal end up going bankrupt because they cannot keep up with the payments. Get all the facts before entering into a consumer proposal.

We have loan companies who will approve you if you are in a consumer proposal. Contact us and get all the facts.