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co-signer who can`t make the payments

I co-signed for a car a little over two years ago. the person whom i cosigned for is no longer making any payment. He is very difficult to find and even if i were to sue him it would be hard to collect as he gets paid in cash (when he is employed). i am a stay at home mom with very little income (i do part time child care). my husband and i bought a condo in march. there is $11000 left to pay on the car (which was totaled and therefore can`t be repossessed). We have a joint line of credit which is pretty much at the limit. I have a credit card which is completely paid off. Since I am now stuck with the payments and can`t afford to make them, Am I eligible for consumer proposal? would this have any affect on our condo? are there any other options?

Posted from: Ontario

One Response to “co-signer who can`t make the payments”

Barton Goth – Goth & Company Inc. – Bankruptcy Trustees said...

You definately would qualify for the filing of a proposal. The question is whether or not a Division I proposal or a consumer proposal would work better in your situation and this comes down to how much non-mortgage debt you have. Although, either way will effectively accomplish the same purpose.

In terms of impact on condo, this is largely going to depend on how much equity you have in the condo. But given the fact that you just recently purchased it I don’t expect it will play a significant role in everything. However, you would be best to contact a local trustee, have them review the details of the condo and then they will be able to confirm this.