Pay off loan installment before Consumer proposal decision

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VanDelta2017

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Pay off loan installment before Consumer proposal decision
« on: July 30, 2017, 10:38:35 PM »
Hello,

I have two questions for the group. I have recently applied for CP, and still waiting for Trustee interview, my question is do I need to keep paying my loan amounts as is before the CP decision, the reason I am asking this question as the company who is helping me to file the consumer proposal has asked me to stop making any more payments to your creditors and dont attend their calls. I am wondering if its a routine practice. Secondly, I have also applied for my wife sponsorship, would you think that her Canadian sponsorship would suffer before of consumer proposal. Thanks.

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CP_2_be_BetteR

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Re: Pay off loan installment before Consumer proposal decision
« Reply #1 on: July 31, 2017, 09:09:05 AM »
I got that same advice and followed it, however I have a 90 day past due on that loan with TU and equifax now. Not sure if I can get it removed and how to go about it...

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markis

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Re: Pay off loan installment before Consumer proposal decision
« Reply #2 on: August 02, 2017, 12:12:52 PM »
Hi there...When I met with my trustee the very first time back in December she advised me of the same thing...She told me to stop paying all my cards, etc....everything that was to be included in my proposal.  It is a standard thing.  Gives you the chance to start saving up some money.  Let me tell you, since I made the decision to do a consumer proposal my life had been so much better.  I sleep at night, I am never stressed about things anymore and have been able to save quite a bit of cash.  I spend money only on things that I need, not on the things that I want.  It's a great feeling to be able to live this way.  I hope that things work out for you.

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Wetcoaster

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Re: Pay off loan installment before Consumer proposal decision
« Reply #3 on: August 02, 2017, 04:38:08 PM »
We were actually told to stop making payments so that every card missed at least one payment even before we filed the proposal.

So we saved up a good chunk of money over a few months.

So it is pretty standard by the looks of it.

No idea about your other question.....a trustee would be more informed on ramifications of that.


Good luck with your CP.  I wish we had not put it off so long but it all worked out in the end.   

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LT

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Re: Pay off loan installment before Consumer proposal decision
« Reply #4 on: August 02, 2017, 05:56:38 PM »
Yes, stop all payments immediately. Save as much money as you can, you will need it going forward.  Open a new bank account with a bank that is NOT one of your creditors. Move all your automated deposits & withdrawals to this new account. Do this before you actually go into your CP.  Some banks do a credit check when opening bank accounts, even a savings account, so it might be harder to open a new account afterwards.

When the creditors call, tell them you are in the process of a CP and to direct all subsequent calls to your trustee.  They are required by law not to contact you again.

Unfortunately, yes this will affect your sponsorship.  Sponsors must be financially stable and be able to support the sponsee.  You may want to delay your CP, but it is best to ask your trustee.

Good luck.

 

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