Getting a Car Loan:
Bankruptcy vs. Consumer Proposal

Both bankruptcies and consumer proposals damage your credit significantly, meaning traditional lenders will decline your auto loan application. However, specialized lenders treat these two situations slightly differently.

Auto Loans During a Consumer Proposal

A consumer proposal is an agreement to pay back a portion of your debts. Because you are actively making payments to a trustee, many specialized lenders view you favorably.

• Approval Odds: Very High. You have consolidated your debt, freeing up cash flow.
• Timing: You do not need to wait until the proposal is finished. You can get a car loan while actively paying your proposal.
• Trustee Permission: May be required, but is rarely denied if the car is necessary for work and the payment fits your budget constraints.

Auto Loans After a Bankruptcy

Bankruptcy wipes out eligible debts entirely but leaves a severe R9 rating on your credit report for years.

• Approval Odds: High. Lenders know you have zero debt obligations moving forward.
• Timing: Most lenders prefer you to be discharged (which usually takes 9 to 21 months), however, we have exclusive lenders who will approve you while undischarged.