co sign

September 19th, 2012 by Questions

I have a credit card that I am the primary on . My spouse co signed when we got the card. In a consumer proposal does my spouse need to file a consumer proposal or can it be covered under mine on this debt?

Posted from: Prince Edward Island

Questions

One Response to “co sign”


September 19, 2012 at 4:42 pm, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

If your spouse co-signed on the card then your spouse is jointly responsible for that debt and your consumer proposal cannot release any other party from their obligation. The idea is that the two of you are jointly and severally liable for the card. Meaning each of you have signed the agreement saying that you guarantee that the debt will be paid irrespective of whatever happens to the other party. So if you were to pass away your spouse is fully responsible and vice versa.

This applies to the consumer proposal and because of this you may want to consider filing a joint consumer proposal. But discuss this with your trustee.

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