Co signer
I am thinking about doing a proposal or bankruptcy.
I do have a question regarding a co signer.
I have a co signer for a personal loan , will that co signer be notified and have to pay that loan back ?
It’s for a trailer loan – she co signed. Her and my husband are on the ownership but my name and co signer ‘s name is on the loan.
I don’t want to involve my co signer in any of my financial situation . So i want to find out my options.
Thank you .
1 Answer
If the trailer loan is being paid in the normal course then this won’t be an issue.
A consumer proposal only deals with unsecured debts, not secured debts such as car loans and mortgages where there’s an underlying asset held as security for the loan. However, the loan payments must be paid in the normal course.
If on the other hand you can no longer meet these payments then the trailer will be repossessed by the financing company and any shortfall will be the responsibility of your co-signer.