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Mary

I`ve decided to try and get a Consumer Proposal for my debts. I would like my husband to continue paying his debts and NOT get a joint Consumer Proposal. It is important that his credit history stays good as he has just starting a new business. I have a few credit cards that are in my name only, but what happens to my credit card debts that are joint accounts and our line of credit which is a joint bank account? If the joint accounts are payed through a Consumer Proposal, will my husband also get a bad credit rating? Thank you.

Posted from: British Columbia

One Response to “Mary”

A licensed trustee said...

The joint accounts have the option of receiving payments from the proposal and/or from your spouse. The only catch is they are NOT entitled to receive more than 100% of what they are owed.

In most cases with joint debts, the creditor demands payment from the joint debtor (ie your spouse) and submits a claim to the trustee for the proposal. When the proposal makes a payment towards the debt it is applied to the account and will show up on the joint borrowers next statement.