added significant other income on credit apps

[ronnieron]

when i applied of the cards im now deliquent on i used my signiicant others income. as we live together and have 3 children together. it asked for household income so i added hers as well.

will this raise red flags? my income was 40k and hers was around 90k. i dont want to involve her. she was aware of me adding her as household income and was an authorized user on the cards.

[justbroke]

In 2009, the CARD Act was created and forced banks to only consider an applicant's personal income rather than household income. Unfortunately, this caused issues with spouses and partners who shared a household, but one spouse worked and the other did not. The non-working spouse could not get credit and this was weighted heavily against women.

The CARD Act was amended in about May of 2013 reversing that specific requirement IF the applicant is over the age of 21 and has a reasonable expectation of relying on a household member's income to pay their bills.

So, you did not involve the other person. You stated your household income which is allowed. Unfortunately this relaxing of the rules in 2013 may cause the same problems that the 2009 rule attempted to fix.

I would remove her as an authorized user as it will destroy her credit as you become more delinquent. Unless it's American Express she should not be responsible for any payments (unless the contract is specific on this topic).

I don't think it's an issue other than you really need to remove your partner/spouse/significant other from being an authorized user.

[ronnieron]

thx for reply just broke.
will they request all her w2 s, as well?
Also up until a month ago, we had a joint accoint, we decided to take myself off the account, but direct deposit is still going into the account. what woukd be the next best course of action? im being sued so not scared to open another account in my name.
how many months of bank statements do trustees normally ask for? can she take half the the moneynin the account and open another account in her name and keep this account open with my direct deposit going in and all bills coming out of current account? will trustee except statements with just her name, if it shows my direct deposits and bills coming frok account?

thx
been reading u guys are most helpful. sure ill have more questions.

[justbroke]

I don't know if they'll ask questions about W-2s for the non-filing spouse. They typically only want paystubs and your tax returns. The typical number of bank statements, for a Chapter 7 person, is for 3-6 months.

I would personally not start moving money around last minute. I had an account with only my name on it which we shared but I don't know what your Trustee will want.