co signed personal loan
2 years ago i consolidated most of my debts with a loan i wasnt approved so i needed a cosigner. my employer offered to help by cosigning i was approved.now my finacial situation is very bad and i cant afford to make all my payments or live.if i declare bankrupcy will my loan be included or can i still continue to make the payments on this ?
if not this will effect my employment and personel health!
This is a very difficult situation. Inder the Bankruptcy & Insolvency Act (BIA) you are required to treat all of your unsecured creditors in the same manner and if you continue to pay the one creditor it violates the tennants of the BIA, but failure to do so may jeopardize your employment situation and hence prevent you from making any payments to creditors.
Off the top of my head you may need to approach your employer, make arrangements for them to continue to pay the account each month and arrange for you to make payments to your employer as a condition of employment, therefore it is not you directly paying the original creditor.
It is important you discuss this with your trustee as there are many little factors that could impact the required course of action.