Today’s tip: only co-sign for someone if you are absolutely positive that they will be able to repay the loan in full, on time. If they don’t make the payments, you are liable for the entire unpaid amount owing on the debt.
If it’s a small loan, or if you have lots of money, that may not be a problem. In most cases having to pay someone else’s debt because you co-signed would be a financial burden on you, and that’s something to avoid if possible.
If the person you co-signed for ends up going bankrupt, you are fully responsible for the loan. That’s the risk if you are a co-signer and your friend declares bankruptcy in Canada.