Is It Possible Get a Personal Loan After CA onsumer Proposal?
Consumer proposals are part of the bankruptcy process in Canada. Essentially, it's a document stating that your creditors and the licensed insolvency trustee agree to terms that obligate you to pay off a fixed percentage of the debts that you owe. The same document may also be used to provide more time to settle your debt in full. Currently, your debt cannot exceed $250,00.00 and still be eligible for a consumer proposal.

So, can you qualify for a loan after a consumer proposal? The short answer is yes. The long answer will require a more detailed response.

Why Would You Want a Personal Loan?
Before getting into the specifics of why you might want a loan while remitting the payments specified in the consumer proposal, think about why you might want a personal loan in the first place. One has to do with replacing something that you need. For example, you’re in the middle of paying off debt under the proposal terms and your automobile dies. You need it to get to and from work. In this scenario, a personal loan that helps you buy something that will serve the purpose until you pay off your debts and can do better is essential.

Unexpected financial emergencies are another reason to think about loans during this time. They may have to to with medical treatments not covered by insurance, dealing with a major appliance breakdown at home, or any type of emergency that will require cash to settle.

You may even be at a point where it makes sense to take out a personal loan as a way to satisfy the remaining debt identified in the consumer proposal. Satisfying that obligation and having the bankruptcy discharged will certainly be a good thing.

Remember that this is not the time to take out loans for non-essential purposes. Wants can be delayed until the consumer proposal terms are settled and you are out of debt.

Getting the Loan
During this time, lenders are likely to consider you to be a greater risk. Even so, there are lenders who will be willing to work with you. Depending on the amount you want to borrow and the way you plan on using the funds, it’s possible to secure a loan to finance whatever project that you have in mind.

There are lenders who offer what are known as consumer proposal loans. While you cannot expect the trustee to endorse any lender, you will likely get some tips about these types of lenders from the trustee as well as the consumer finance classes that you are required to take. That includes understanding how to evaluate the terms and conditions that will govern the loan.

What Lenders Will Require
While it’s apparent that you are in a consumer proposal, lenders will also look at how you are managing those payments. Remember the trustee is also reporting your good payment record. The lender will also be interested in your current income level. The goal is to ensure that there’s enough money coming in to continue making your payments to the trustee and manage the installment payments on the loan.

After reviewing your situation, the lender will make an offer. Assuming the terms and conditions are within your ability to meet and you really do need the money to take care of a need, accept the offer. From that point on, make sure the payments are on time and that you continue to avoid accumulating any unnecessary debt.

Employing everything you’ve learned about financial management is key to getting through this season in your life. The day will come when you settle all the conditions of the proposal and are once again free of any debt. In the meantime, take care of what’s essential, refrain from spending money on things you don’t need, and you will ultimately be in a much better financial position.