Co-signer effects
I am thinking about applying for a Consumer Proposal. My mother has co-signed for my mortgage and a Line of Credit. Can I exclude the Leine of Credit from the proposal? Will this affect her credit in any way??? Everything else is in mine and my husbands name.
Posted from: Ontario
Unfortunately unless the Line of Credit is secured to some asset that you own, it will be treated as an unsecured debt and included in your list of creditors to be dealt with by the proposal.
If your mother has co-signed the Line of Credit then the lender will contact her once they receive notice of your proposal in order to make arrangements for your mother to start making the required payments on the Line. If the payments are not made then it will have an impact on your mother’s credit rating.
You and your mother should go and see a trustee togther to discuss your options.