Hashing out the terms and conditions of the contract

Hawryliw: good intentions aside, draft an agreement when co-signing

Co-signing a loan for a family member starts with the best of intentions, but can lead to unexpected financial woes, bad blood, and legal battles, Barrie civil litigator Scott Hawryliw tells AdvocateDaily.com.

Hawryliw, founder of SRH Litigation, whose practice areas include personal injury, commercial and labour law, says many Canadians are still unsure about the implications of debt.

“When you get a secured loan, such as a mortgage or car loan, it’s secured against an asset,” he says. “But, if you don’t have any assets, and don’t have the income to support the loan, you need a co-signer.”

Hawryliw says these individuals attach much more than their names when they become party to someone else’s loan.

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