Consumer Prop. with Co-signer
December 19th, 2008 by Questions
I just want to clarify something…
One of my debts was co-signed by my father. Is there any hope of getting this in a consumer proposal or is the bank able to get out of this and collect from my father (even if over 75% of creditors agree with the proposal)?
Posted from: British Columbia
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December 19, 2008 at 10:15 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
If you file a consumer proposal you must include the co-signed loan and will be cleared from it by the proposal. However, the proposal won’t release your father from the debt. When your father signed on the loan he verified that whatever happens to you he would ensure the loan was paid in full. So there is no action you can take to clear a debt that is in his name. The only thing you can attempt to do is have the bank remove him from the loan, but it is doubtful the bank would consider doing that.