Keep the proposal’s repayment plan in view

A consumer proposal is administered by a Licensed Insolvency Trustee and sets out an agreed way to deal with covered debts. Taking a new loan while payments are ongoing can reduce the money available for that arrangement. Discuss the proposed expense and repayment with the trustee handling your file before assuming that a lender’s no-credit-check advertisement makes the borrowing suitable or compatible with the plan.

New borrowing creates a separate obligation

After completion, retain the relevant paperwork and check that the credit record reflects the actual status. Completion does not create an entitlement to fresh credit, and different lenders treat previous insolvency differently. The Office of the Superintendent of Bankruptcy explains the proposal process; non-profit counselling can support a realistic post-proposal budget. Compare alternatives for the immediate expense, especially if a new instalment would recreate the shortfall that led to the proposal in the first place.

Distinguish active arrangements from completed ones