Consumer proposal or debt consolidation
January 24th, 2016 by Questions
I owe a total of 70k including my car loan. I was advised to leave the car loan alone. Hence, apply for CP or DC for the rest. Since my mother is the primary owner of the account and I am just a signee of our RBC Credit line worth 36k, How would I be able to include this for CP? or is it advisable to do DC instead? Will my CP affect her credit standing? She is planning to buy a house, and I do not wish to get in the way of their plan. Please help. Any input will be appreciated. Thank you
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January 25, 2016 at 11:47 am, Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said:
If you file a consumer proposal or bankruptcy you have to include all of your debts. If you co-signed or guaranteed a credit line for your mother (assuming she is paying on it) then the creditor could file a claim for contingent liability. The creditor would have to value the claim based on the reason expectation that your mother will or will not pay off the debt. The trustee will review the claim for reasonableness. Upon the completion of the proposal or bankruptcy your liability for the debt will be discharged. Your mother will still be responsible for the debt and if she pays it off in accordance with her contractually liability her credit standing will not be adversely affected.