Licensed Insolvency Trustee Blair Mantin answers your questions about how to manage debts, including options such as Credit Counselling, Consumer Proposals and Bankruptcy in BC!
Q: What should I consider before taking on joint debt or co-signing a loan?
A: Think carefully before agreeing to any co-signing or joint debts.
By co-signing, you become equally responsible for repaying the full balance left to the lender if the other person does not pay. Consider if you would be able to maintain the payments on your own if you had to.
Some credit card terms may state that secondary cardholders can also be responsible for outstanding balances, even if they were not the original applicant for the card. Always check terms before accepting a secondary or supplementary card.
It’s also important to note that you are not responsible for repaying your spouse’s creditors (even if they file a bankruptcy or consumer proposal) unless you have co-signed on the debts.