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I want to file a consumer proposal, what is the best solution for me

I want to do a C.P. I have a personal loan, 2 credit cards (in my name, but he also has supplemental cards). We share a car loan, a mortgage and an unsecured line of credit. What would be the game plan here?

Posted from: Ontario

One Response to “I want to file a consumer proposal, what is the best solution for me”

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Barton Goth GCO Bankruptcy Trustees said...

You will need to sit down with a local trustee. But there are a few things you should know in advance:

1. With a consumer proposal there likely won’t be any impact on the car loan or the mortgage, so you will need to continue to make sure the payments are made as originally contracted.

2. Any joint unsecured debt (i.e. line of credit) will be cleared if you file a consumer proposal, but this will only be in your name that is cleared. You will find that your significant other will not be cleared from this debt as a proposal has no ability to clear debt that is other peoples names.

3. I have also seen some instances wehre the credit card company has pursued the supplementary card holder for purchases made on their card. So be advised that this is a possibility (although not a highly common one).