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| Author: |
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Gordon |
| Date: |
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February 14, 2005 |
| Question: |
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In regards to a joint loan between two people and they are now separated. If one person is thinking about filing for bankruptcy what happens to the other persons credit rating AND what can they do to pay the creditor and not make themselves liable for the debt.
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From: |
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Ann Clarke, Alger & Associates Inc. |
| Date: |
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February 14, 2005 |
| Answer: |
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If one person on a joint loan files for bankruptcy, the other person becomes liable for the full amount of the debt. The bankrupt person is no longer allowed to make payments to unsecured creditors. It should not affect the second person's credit rating as long as they are paying on the debt.
Ann Clarke
phone: (403) 296-2972
aclarke@alger.ca
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