If I file a Consumer Proposal will my lines of credit revert to the co-signers?
May 1st, 2014 by Questions
I have 2 education lines of credit (with different banks) that my parents co-signed for while I was in school. If I file a consumer proposal now, will those loans just revert to them, or is there a way I can insulate them from liability? There’s no way they can afford those payments on just their pension income. Thanks.
Posted from: Newfoundland and Labrador
One Response to “If I file a Consumer Proposal will my lines of credit revert to the co-signers?”
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)
You must be logged in to post a comment.
May 01, 2014 at 12:48 pm, Gareth Slocombe, Trustee | C.I.R.P | C.A said:
A bankruptcy or proposal by you does not absolve your parents of the co-signed debt obligation. In order for your parents to get rid of the debt, the lender would have to voluntarily choose to not pursue them under the co-sign agreement. If not, then your parents would need to file a proposal or bankruptcy in order to extinguish these debts.