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joint dept

What happen to joint cridit cards an joint morgage if I fill a consumer proposal

Posted from: Ontario

One Response to “joint dept”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

There are two answers to this question. The first is the simpler one and relates to the credit cards. If you are the one who files the consumer proposal, your responsibility for the debt will be removed as it is dealt with in the proposal. But the other party is still responsible for that debt to be paid in full.

In terms of the mortgage, this is secured creditor, and a consumer proposal doesn’t have the ability to compromise the rights of a secured creditor. So both you and the other party who are joint on this debt will need to make arrangements for that debt to continue to be paid. The only time this changes is if he property is foreclosed on prior to the filing of the consumer proposal.