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

Questions

One Response to “If I file a Consumer Proposal will my lines of credit revert to the co-signers?”


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.

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