Comments on: joint debts and bankruptcy or proposal http://www.bankruptcy-edmonton.com/bankruptcy/2009/05/joint-debts-and-bankruptcy-or-proposal.html Bankruptcy Edmonton Tue, 07 Feb 2012 15:47:45 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Bart Goth, Trustee in Bankruptcy http://www.bankruptcy-edmonton.com/bankruptcy/2009/05/joint-debts-and-bankruptcy-or-proposal.html/comment-page-1#comment-370 Bart Goth, Trustee in Bankruptcy Thu, 14 May 2009 12:54:05 +0000 http://www.bankruptcy-edmonton.com/bankruptcy/2009/05/joint-debts-and-bankruptcy-or-proposal.html#comment-370 When you file a <a HREF="http://www.bankruptcy-edmonton.com/bankruptcy-edmonton.htm" rel="nofollow">bankruptcy</A> or a <a HREF="http://www.bankruptcy-canada.ca/consumerProposals.htm" rel="nofollow">consumer proposal</A> you will be cleared from any debt in your name. While there is a list of <a HREF="http://www.bankruptcy-canada.ca/bankstatic/debts-that-stay.htm" rel="nofollow">debts that are not released by bankruptcy</A> 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 <a HREF="http://www.moneyproblems.ca/personal-bankruptcy-canada.htm" rel="nofollow">bankruptcy</A> or a <a HREF="http://www.bankruptcy-alberta.com/proposal-as-bankruptcy-alternative.htm" rel="nofollow">consumer proposal</A>. So the person who is jointly listed will still be responsible that this debt be paid in full. 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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