Receiving co-signed credit during bankruptcy

September 23rd, 2009 by Questions

If am currently in bankruptcy, am I able to receive and use a student line of credit that is co-signed by someone else for educational/living expenses?

Posted from: Ontario


One Response to “Receiving co-signed credit during bankruptcy”

, A licensed trustee said:

If this is “new’ credit (ie credit obtained after you filed for bankrutpcy) you must make ceratin you have disclosed the fact that you are an undischarged bankrupt – otherwise you will commit an offence under the bankrutpcy Act and you could get yourself into trouble.

If the line existed before you filed then it should have been listed on your Statement of affairs and they should have been notified of your bankrutpcy. You need to confirm that with them before you try and use the line, again to make sure you aren’t going to get yourself into trouble.

I should warn you that if you end up in Court for some reason during your bankruptcy the Court will not be impressed if they discover you have used credit during your bankruptcy. If I were you, I’d discuss all of this in detail with your trustee BEFORE you borrow.

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