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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 100423
Experience:  Lawyer
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I share joint lines of credit with my husband, I got into a

Customer Question

I share joint lines of credit with my husband, I got into a bit of a dilemma with my bank for writing myself cheques before payday. The bank is closing the lines of credit as they want me out of the bank for 7 years. Can they leave a black mark on my husbands credit even if he offers to take over the loans
Submitted: 1 year ago.
Category: Canada Law
Expert:  Debra replied 1 year ago.

No. So long as your husband does not allow any loan to go into default it will not hurt his credit rating at all.

I am sorry that you are in this difficult situation and I hope things work out for you soon.

Customer: replied 1 year ago.
Hello again, they are going to close the lines of credit, and therefore we have to pay them off in full, my concern is what if we cannot get a consolidation loan to cover the lines of credit, what options do we have ... legally
Expert:  Debra replied 1 year ago.

You can try for a second mortgage if you have a home.

Customer: replied 1 year ago.
We are currently looking into that, my husband is self employed and finding the 2nd mortgage is a process, do we have to end up in collections? or is that the only option if the 2nd mortgage does not work. My only concern is my husband's credit rating
Expert:  Debra replied 1 year ago.

His credit rating will be harmed if the loan goes into default.

But perhaps your spouse can convince them not to close the lines of credit so long as it is agreed that no one can borrow more but he will pay them off slowly.

Customer: replied 1 year ago.
Thank yiu
Expert:  Debra replied 1 year ago.

You are very welcome. I sure hope you can work this out.

Customer: replied 1 year ago.
I was looking for an answer that will enable us, legally to get out of this. So far we have mutually been agreeing to what could happen, that is not helping.
Expert:  Debra replied 1 year ago.

I know what you want but I have to give you an honest answer. Your husband is as indebted to the bank as you are because the line of credit is joint. So if the line of credit is called and must be paid off it harms him just as much as it harms you and there is no legal way around that.

The practical ways around this are either to try and make a deal with the bank on the basis that it was you and not him that is guilty of the actions that made the bank decide not to allow the line of credit to continue or else borrow money elsewhere to pay off the debt.

Please don't blame me for your situation. I am trying to help but I cannot make up an answer to make a customer happy. That would not be of any help and in fact would cause harm. It's not what I am here for.

You created this situation and I know you feel terrible about it and that is completely understandable as you don't want your husband to suffer because of what you did when you were in a very difficult situation but from a legal point of view you don't have any legal options.

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