My mother is 84 and her sole form in income is a social security check for less than $1,000 per month and she has no substantial assets. Her credit card debt totals somewhere around $35K and she stopped making payments to her creditors approximately six months ago. We have not filed for bankruptcy yet because we have gotten conflicting information on whether or not is the best course of action. Some say my mother is judgment proof and therefore doesn't need to file, others say we should just do it and get it over with. Either way, we were waiting six months before filing if we decide to file. My mother is deaf and therefore unable to converse with creditors via the telephone. I am an authorized user on one of her credit cards. The balance on the card is about $4K, half of which is from charges incurred by me using the card, with her permission. For several years I made the minimum payments to help my mother. My mother's living situation changed drastically a year or so ago and she was forced to start paying rent and also has health needs that cost money - this is why she is now unable to meet her credit card debts. I stopped making the payments on this card when my mom told me she was going to stop all payments to creditors and consider bankruptcy. Now this credit card company is calling me and they even called my job. They are accusing me of using the card when I knew my mom couldn't make the payments and saying I'm financially responsible for the debt. Is that true? Any help or advice would be appreciated. Thanks.
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Typically authorized users of credit cards, are also financially responsible for the debts accrued. Do you remember furnishing the credit card company your DOB and SSN? If you did, your credit will be negatively affected by not paying.
Since your mother doesn't have any assets: house, car, etc..........then simply allowing her to default on the debts, and not file BK wouldn't be a bad option to consider. Based on your mother's age, and solvency status - she's already a pending loss to the creditors, and her SS stipend wouldn't be touched anyhow.
Good Luck!The information provided is not, and should not be considered legal advice. All information provided is only informational and should be verified by a law practioner whenever possible. When confronted with legal issues contact an experienced attorney in your state who specializes in the area of law most directly called into question by your particular situation. -
ACK! I didn't know that authorized users could be held liable! I added a friend of mine to my Discover card a couple months ago, because he was keeping my cat while I was on vacation, and I wanted him to have access to money in case he needed a vet visit. I never gave them his address or phone, and certainly not his SSN or DOB, though, and he has a very common name, so can I assume he's safe?!? If it makes any difference, he never used the card...Comment
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I'm more confused now, as the little bit of research I did this a.m. clearly indicated to me that authorized users are not liable for the debt. I never provided my SSN or DOB to this credit card company.Comment
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Call your credit card company and ask them to fax or mail you the authorized users agreement.Originally posted by Rula13The information provided is not, and should not be considered legal advice. All information provided is only informational and should be verified by a law practioner whenever possible. When confronted with legal issues contact an experienced attorney in your state who specializes in the area of law most directly called into question by your particular situation.Comment
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