“What About My Parents? – My name is listed on their credit card/car loan”
I’m an authorized user on my parent’s credit card account. If I file bankruptcy, will it hurt my parent’s credit?
In the event that you can charge purchases on the account, but are not responsible for the balance than the credit card lenders is not one of your creditors. The lender will not be listed in your bankruptcy, and your other financial dealings (not involving your parents) should not affect your parents.
Now the story is different if you and your parents (or other family members or friends) have co-signed for the card whereby each of you is equally liable for the balance on the card.
If they co-sign for you, they will have to make good on the loan, if you don’t. The good news is that by simply filing bankruptcy (and they payments are current) you or your parents can continue to make the payments and their credit will most likely not be affected. If you or they default, the bank or credit card company can, and will come after your parents (including reporting negative history to their credit file).
Disclaimer
Fresno-Bankruptcy-Lawfirm.com is owned by the Law Offices of Jeffery D. Rowe. We are a debt relief agency. We help people file for bankruptcy relief under the Federal Bankruptcy Code (Title 11 of the United States Code). If you would like to discuss your situation in further detail, please call our offices at: (559) 228-1500 to schedule a consultation.
Tags: authorized user, co-sign, credit, credit card, credit file, file bankruptcy