How to Stop CRA Garnishment After Receiving an RTP Demand Payment Letter

Ever felt the stress of unexpected financial setbacks? How to stop CRA garnishment is a question many Canadians face when dealing with debt issues and a RTP (Requirement To Pay) from the Government of Canada. Understanding the steps to halt this process can alleviate a significant amount of stress and help you regain control over […]

How Many Times Can You Do A Consumer Proposal

Ever felt like you’re stuck in a financial maze with no exit in sight? Debt can weigh you down, making every day feel like an uphill battle. But what if there’s a way to reset and start fresh? How many times can you do a consumer proposal? The straightforward answer is that you can file […]

Who Can Put a Lien on Your House in Canada?

Liens can significantly impact property ownership in Canada, often catching homeowners off guard. Understanding liens—what they are, the types that exist, and who can place them on your property—is crucial for any homeowner. This article unpacks the complexities of liens, explores potential lien holders, and discusses the consequences they can have on property sales. It […]

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Mortgage Co-Signers Liability

What happens to a co-signer on a mortgage if the mortgagee goes bankrupt??

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One Response to “Mortgage Co-Signers Liability”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

This depends on whether the bankrupt continues to make payments on the home or not. In most instances the debtor wants to keep the house, continues to make payments and there is no impact on the co-signer. However, if the debtor ceases making payments prior to bankruptcy and then quits the premises, upon bankruptcy they would be cleared from any shortfall and the co-signer would be required to make payments until the shortfall was paid in full.