If I have cosigned

May 9th, 2012 by Questions

If I have co-signed for a Line of Credit and I declare backruptcy, what happens to the line. The LOC is for my landlord who needed renovation to the house in which I was staying, my payment to the LOC was considered rent, but never claimed by me or the ladlord as rent, the LOC was secured against the house. What happens to the LOC, is it at risk?

Posted from: Ontario

Questions

One Response to “If I have cosigned”


, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

What you have is joint line of credit secured by someone else’s property. This may be a bit confusing, but essentially for you this is an unsecured line of credit that you are cleared from by a bankruptcy.

The confusing part is that for the other party, your landlord, this is a secured line of credit that they are responsible for. As such they would have to make arrangements to continue making payments on the line of credit.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)