Authorized User Filed Chapter 7 - Is Card Debt Erased

**abercrombie** · 10-31-2009, 07:29 PM

My question involves bankruptcy in the state of: Georgia

My spouse has filed chapter 7 and is an authorized user on my card. His attorney told him that the cards that had him as authorized user were now part of the chapter 7 and will be cleared like his credit cards. I have researched this and cannot find anything to support this. The CC company is chase. Any help would be appreciated.

**Mr. Knowitall** · 10-31-2009, 07:49 PM

If he's only an authorized user for your cards, his bankruptcy has no effect on your liability.

Moreover, if he's just an authorized user it's not even his debt in the first place. Why does he even feel a need to "discharge" it?

**abercrombie** · 11-01-2009, 10:25 AM

We never even put it on his list. When the law office ran an credit check on my spouse they added it themselves. I didn't think it made sense and could never figure out why it had been added.

**Tanos** · 11-18-2009, 05:42 PM

I have the same situation, does the authorized cc charges count towards chapter 7

**KeyWestDan** · 11-19-2009, 07:45 AM

I am not a bankruptcy attorney, however, the answer has to be no.

An authorized signer is just that. The person is legally able to spend the money available on the card but is NOT responsible for the debt in any way.
The authorized signer is not the owner of the debt.

In the case of a spouse, under community property laws and the like, they both would be responsible for the debt. But that is an entirely different legal basis and argument.

Now, if the court and the people involved do not pay attention, maybe it can be done.

Look at it this way. An employee is an authorized signer on his employer's credit card. The employee goes bankrupt. He can't claim debt that he doesn't own and is not legally responsible for. If the employer goes bankrupt, the employee is not responsible for any of the debt.

The credit card owner's fico score has affected the fico score of the authorized signer. The credit card companies have changed the rules so that it doesn't matter much.

There have been businesses that sell this as a business. They would improve their customers credit scores by putting them as authorized signers on cards held by people with excellent credit, who got a big cut of the fee. I don't think there were any actual cards delivered to these customers, it was just a way to boost their credit scores. The credit card companies have gotten wise to that.