bankruptcy/credit card question..?

Question

my mom is declaring bankruptcy..and when i was younger she got me a credit card so i was cosigned under her name..will her declaring bankruptcy affect my credit score and make it bad..say if she maxed out my card..and since she declared bankruptcy..will it make my credit bad because wouldnt it mean that i didnt pay it back.. I am not familliar with this..Can someone help please

Answer 1

The only way to get out of this is either to file bankruptcy yourself (which will affect your credit score) or pay the debt back.

Another thing, she has to list the account when filing for bankruptcy for her to not be liable if the case is discharged.

Another thing you might want to know is...

CO-DEBTOR STAY

In Chapter 13, there is an automatic stay that prevents actions against guarantors or co-signers of consumer obligations of the debtor.

If a mother co-signs a son's car loan and the son files a Chapter 13 petition, the co-debtor stay will prevent the loan company from collecting from the mother, during the case.

Answer 2

If there is a balance on the card at the time she files for bankruptcy, you will be responsible for the debt. If you don't pay it, then it will be charged off and the negative information will be placed on your credit report.

As mentioned, if you were a minor when the card was issued, you MAY have a way out of it....but it's going to be difficult. Also, they may place a note that there is a "related bankruptcy" on your reports. At the very least, it will show the card on your record with "included in bankruptcy" on it. Either way, this is not stuff you want on your records.

I would deal with this card before your mom files bankruptcy.

Answer 3

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RE Bankruptcy/credit card question..?

my mom is declaring bankruptcy..and when i was younger she got me a credit card so i was cosigned under her name..will her declaring bankruptcy affect my credit score and make it bad..say if she maxed out my card..and since she declared bankruptcy..will it make my credit bad because wouldnt it mean that i didnt pay it back.. I am not familliar with this..Can someone help please

Answer 4

If you are wanting to keep trhis card and your working and can pay it back, try getting your mom's name removed and then her bankruptcy won't hurt you, but you will now be responsible for it though!

The website below has a lot of great information on this and all subjects related to credit repair and updates all the time, so get the RSS feed too.

I used the help I got from here to get my score from 485 to 729 in a little over a year!

Answer 5

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Answer 6

Well, if you were only a signer on the account, you are not responsible for the debt. It clearly states in the credit card terms that the primary cardholder is responsible for all debts incurred on the card. You wont be able to use it anymore so try to apply for your own.

Answer 7

This is probably going to be trouble for you. Most likely after she declares BK, they are going to cancel the card and then come after you for the debt. You can dispute it though, but chances are you are going to have bad credit while you are disputing. (your dispute can be that you were a minor when you signed for the card and the debt cant be pursued because you were under 18.) If you were over 18 when you got the card, you can still dispute, but it will be harder and I think they will still come after you for it.

I hope its not alot.

Answer 8

If your name is on the credit card you have to pay it, whether or not you are the one that charged it or she was. She is discharged from liability but you aren't. It will adversely effect your credit if you aren't paying for it.

Answer 9

you cosigned. if she cant pay, they will come after you. the debt is not releaved unless you also file bankruptcy.