I have a few big problems, I have a bunch of debts, they are mostly credit cards in my name, but there is a bank line of credit. The problem is that this line of credit is held jointly with my spouse. What would be the effects on my spouse under a consumer proposal or, in a bankruptcy?
joint debts and bankruptcy or proposal
posted by Questions @
1 Expert Comment:
At May 14, 2009 |
5:54 am
, Bart Goth, Trustee in Bankruptcy Said...
When you file a bankruptcy or a consumer proposal you will be cleared from any debt in your name. While there is a list of debts that are not released by bankruptcy you will find that joint debt is not on this list. So you will be absolved from any responsibility pertaining to your normal unsecured debt.
In terms of the impact on the cosigner, when they signed the original loan document they verified that the loan in question would be paid irrespective of what happens to you (i.e. death, dismemberment, or the filing of a bankruptcy or a consumer proposal. So the person who is jointly listed will still be responsible that this debt be paid in full.
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