Question Dad Filing chapter 7. Im secondary. Whats going to happen??

[yorkiegirl]

Hi. I'm from Ca and have a question. Thing is my dad is financial trouble. He added me to his card as a secondary user to help me build my credit about 2 yrs ago. Now he has got himself into serious debt and is in the process of filing chapter 7. I would like to know how this is going to affect me. Is there anyway at all to save my credit? I am not filing. If I closed the account and continued paying would they still report the account to my credit as bankruptcy? If my credit is doomed should I just stop paying? It is his debt to the tune of about $5,300. Just need advice. Really stressed about this. wanted to buy a house in the next few years. I do have about 4 other accounts in my name only that are in good standing. Your help is greatly appreciated..

[lrprn]

First of all, what matters here is if you are a co-signer or an approved user on your dad's credit card.

If you signed an agreement to be equally responsible for the balance on the credit card, that makes you a co-signer. If your dad files bk, because of the signed agreement you'll be responsible for paying back the entire amount on the card.

However if you are only an approved user (no agreement to pay the debt was ever signed by you - this sounds like what you are describing), if your dad files bankruptcy, then you are *NOT* responsible for paying back anything owed on the card.

And no matter what, only your dad is going to file bankrutpcy, not you. His banklruptcy does not show up on your credit report and will not impact your credit score.

Rarely one of the credit bureaus will make a mistake and list that you filed bk on your credit line for the shared account. All you have to do in that case is dispute it with the credit bureau that made the mistake - they will remove it within 30 days because it is incorrect - you never filed bankruptcy. Keep an eye on your credit report for the first six months after your dad files to make sure this doesn't happen.

[yorkiegirl]

The account was with Chase Morgan They said I am not a authorized user I am a secondary user. I guess that means it's a joint account. I called Chase and one of the represenitives told me that If I closed the account before the BK that it wouldn't show up on my credit report as a BK. This doesnt make sense to me..

So what do I do? Pay my dads debt to save my credit? Then keep a eye on my credit report to make sure they dont report it as BK??

sorry about all the questions I was not prepared for this..

[lrprn]

No matter what Chase calls it, if you did not sign an agreement to be equally responsible for the debt, then you are *NOT* responsible for paying the debt if your dad files bankruptcy.

Send Chase a registered, return receipt letter (you need a paper trail so don't call) requesting that they send you a copy of the agreement you signed that makes you a co-signer on the card and responsible for paying the balance of what's on the card.

DO NOT pay one dime on this account unless you receive a copy of the signed agreement with your signature on it from Chase. Chase can't do a thing to you without the signed agreement, and they know that. They are just hoping you don't know your rights in this situation so you'll pay them what your dad owes even if you don't have to.

[yorkiegirl]

I just called Chase and they said I did sign something and I am responsible for the balance on the account. They said I have just as much responsibility as my dad. I might have signed something I don't remember very well. The document was in spanish. I don't read spanish my dad does. They are going to send me a copy of the document I signed I will get it in 7 - 10 days.

I just don't want to ruin my credit.

If I in fact signed this agreement and am responsible for the amount owed I will need to pay to keep the account in good standings right? It will default if I don't?

Also they should not be able to report the account to BK since I did not file right?

(I know you said not to call but I'm just looking for advice on what to do if I did sign the agreement and responsible for the debt)

[lrprn]

I just called Chase and they said I did sign something and I am responsible for the balance on the account. They said I have just as much responsibility as my dad. I might have signed something I don't remember very well. The document was in spanish. I don't read spanish my dad does. They are going to send me a copy of the document I signed I will get it in 7 - 10 days.

If what you signed makes you a co-signer and responsible for paying the debt if your dad defaults, then you will be responsible for paying whatever balance in on the credit card when your dad files bankruptcy. If the document is in Spanish, then you need to have the document translated. Ask Chase to send you the English version along with the document you signed, then ask your dad to make sure the two documents match in meaning.

I just don't want to ruin my credit.

If you are a co-signer and responsible for paying the debt, then you won't ruin your credit as long as you pay off the debt by making on-time payments.

If I in fact signed this agreement and am responsible for the amount owed I will need to pay to keep the account in good standings right? It will default if I don't?

That's right. Not making timely payments on the card will affect your credit just like you had taken the card out yourself.

Also they should not be able to report the account to BK since I did not file right?

That's correct. However, rarely credit agencies make a mistake and list your dad's bk on your account line. All you have to do is dispute it - they will remove the bankruptcy designation within 30 days because it's inaccurate - you did not file bankruptcy.

[yorkiegirl]

tysm for your help.