Co-signer paid off loan prior to filing CP

May 1st, 2013 by Questions

The cosigner of a credit line I have paid off the entire loan this week. I am going to be filing a consumer proposal soon. Will this have any effect? The pay-off was done via my bank account but I can show where the cosigner sent me the money and I subsequently applied that money to the loan. If it matters, the balance paid was about $1k.

Should this be an issue?

Posted from: Nova Scotia

Questions

One Response to “Co-signer paid off loan prior to filing CP”



May 01, 2013 at 5:54 am, A licensed trustee said:

Your co-signor has the right to repay any debt that they owe whenever they want to (are able to). Explain what transpired to your trustee BEFORE you file and your trustee can decide whether or not they want to disclose it to all of your creditors or simply note it in your file.

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