Posted on: 25th Jun, 2010 04:19 am
i am filing chapter 7 bankruptcy, due to my loss of income. i have a credit card that my daugher is a co-signer /authorized user. she as well has no income from loss of her job and is 8 months pregnant, but still job hunting. how will this affect her? she doesn't own anything, i'm very worried. thank you
Bea, there is a large difference between being a co-signer and an authorized user. If someone is a co-signer, that person is obligated for the entire debt of the particular account.
When someone is an authorized user, that means that the person has full access to the credit limit imposed by the credit grantor, but no responsibility for payment of the balance on the account.
You need to get this clarified - it's not possible for her to be both of these; it's one or the other. If you file bankruptcy and she's truly a cosigner on the debt, then she'll be required to pay the debt.
When someone is an authorized user, that means that the person has full access to the credit limit imposed by the credit grantor, but no responsibility for payment of the balance on the account.
You need to get this clarified - it's not possible for her to be both of these; it's one or the other. If you file bankruptcy and she's truly a cosigner on the debt, then she'll be required to pay the debt.
As George said, there is a big difference between authorized user and co-signer. Here's how you know which she is. If she filled out an application to be on the card, then she is a co-signer/borrower and also obligated for the debt. If you just got the card and requested an extra card for her and she never completed an application, then she is an authorized user and not responsible for the debt. Authorized users on credit cards no longer get the benefit or detriment of the credit.
3 years ago i co-sign for my then boyfriend a mobile home. i no longer live there is there a way to remove me from this debt
Valerie, I hope you're on speaking terms with your former boyfriend, because you'll have to persuade him to take action in this case. I also hope that you're able to keep track of the loan. Keep in mind that it's in your best interest to know if he's continuing the payments, as your credit will be adversely affected by any lates. You may want to stay in contact with the lender, unless you and he have talked about this.