Is it against the rules for me to be an authorized user on parents credit cards?

[lookitsphillie]

Does my being an authorized user violate the provision against me using credit while in Chapter 13?


I am not liable for the debts.

[anonymuse]

Interesting question. You would incur debt (which you're not allowed to do under a Chapter 13), but you wouldn't be liable for them??? Is it really true that you are not liable for a debt when you are an approved user? Wasn't there a credit card check on you when you were put on as an approved user?

[lrprn]

Does my being an authorized user violate the provision against me using credit while in Chapter 13?

I am not liable for the debts.

According to LegalHelpers Bankruptcy Blog, Feb 22 2006 at http://www.legalhelpers.com/blog/200...cy-common.html

Q: What is the difference between an authorized user and cosigner on my credit card account?

A: An authorized user of a credit card is generally not responsible for the debts that are incurred on that credit card. The primary account holder is liable and has just given someone permission to incur debt in their name. The authorized user is not liable for any of the debts on the card, even the ones the authorized user incurred. A co-signer, on the other hand, enters into an agreement with the credit card company and is equally liable for any and all debts charged on the account. Generally, if one co-signer files for bankruptcy, the non-filing individual will be responsible for the total amount of the debt.

Just curious, lookitsphillie...why do you want to incur debt using a credit card after filing, even if you aren't legally responsible for it? The idea of filing bk is to emerge debt-free and start over. If you are using credit cards before your bk is discharged, that could be a very slippery debt slope even if you do pay back your primary card owner, or could end a friendship or family relationship if you don't.

[lookitsphillie]

I wouldn't use it to incur debt. Mainly for renting a car or the odd circumstance where you would want to use credit.

I just don't want to get a dismissal for it. Technically, I am not borrowing money by swiping the card if I am an authorized user.

[anonymuse]

Ironically, my father asked me tonight if I had any available credit in case of emergency (car breakdown, etc.) and he asked if he should put me on his cc for absolute emergencies. I told him to wait until after discharge, but this discussion is quite helpful.

[Ezrin]

I was wondering about this also. I just filed for Ch. 13, and was hoping the credit card in which I'm an authorized user of doesn't get cancelled. So far so good, it's been two weeks and I haven't heard anything. What worries me is it's my father's card and he doesn't know I'm filing for Ch. 13, and I don't want him finding about by getting a letter saying my card was cancelled. The thing is I filed for Ch. 7 in 1999, and if he hears about this time he will flip out. I asked him if he could get me as an authorized user earlier this year so I could rent a car. I never use the card though, only that one time and I'll only use it to rent cars or maybe hotel rooms when I travel.

BTW, I did tell my lawyer about this (it was listed on my credit report that I gave him) and he said he wouldn't report it since there is no balance on it and it's my father's card, but he did say most times the CC company will find out and cancel it.