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Will a co-signer’s credit be affected if I file a consumer proposal?

I have a line of credit that has my sister as a co-signer, it is a joint account. Will her credit be affected if I file a consumer proposal?

Posted from: Ontario

One Response to “Will a co-signer’s credit be affected if I file a consumer proposal?”

A licensed trustee said...

When you file the proposal you are required to list the line of credit on your list fo people that you owe and you are not permitted to make any payments on the line of credit after that point. As long as your sister that co-signed the line of credit makes the required payments then her credit will not be affected – if she doesn’tmake the payments then her credit will be.

You should have a chat with your sister BEFORE you file the proposal to make certain she is ready and able to make the payments.