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consumer proposal accepted but secondary card holder pursued

My consumer proposal was accepted by all creditors in 8 months ago. A collections agency called a secondary card holder demanding payment of all debt on one credit card – this credit card debt was included within the proposal & accepted. Once this agreement is signed, can a creditor choose a different tactic – such as pursuing collection from a secondary card holder – on order to get their money?

Posted from: Newfoundland and Labrador

One Response to “consumer proposal accepted but secondary card holder pursued”

A licensed trustee said...

The secondary card holder is a co-borrower. That means they are leaglly responsible to repay 100% of the debt. When you filed the proposal you enter into an arrangement between you and the creditors. Your co-borrower was not a party to the proposal so they aren’t protected by the proposal. This should have been explained to you BEFORE you filed the proposal.

When your co-borrower pays off the debt they should notify your trustee so the trustee can withdraw the creditors claim in your proposal.

Sorry, but they are on the hook for the debt.