What would you like to do?
Yes. It could be written off as business expenses before the debt was collected and adjusted on tax forms afterwards. It really depends on if it was reported as a loss or an expenditure attributed to business dealings. A prudent person would probably leave it as a business expense write off, to avoid the possibility of haggling with the IRS.
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What can you do if a credit card on which you were an authorized user is showing up as a charge off on your credit report?
Authorized users are not legally responsible for debt. Contact the crediting bureau and despute the item (explaining the circumstances.) They have to remove it!
Is a person who is only listed as an authorized user on a credit card but never used it liable for the debt if the primary holder files bankruptcy?
%REPLIES% Answer No. An authorized user is not responsible for credit card debt in any situation. Answer Sorry, I failed to mention that the excepti…on is if the "AU" is a spouse and the couple reside in a community property state. Answer What if the authorized user charged on the card? Would he be held responsible for that?
No. All activity on the card should be ceased. The companies should be notified of the person's demise. A copy of the death certificate or other proof of death rendered to th…e ccc's. It is illegal for anyone to use a card in such circumstances.
When asked must credit card companies remove you as an authorized user from an account even without the consent of the primary card-holder?
Answer Credit card companies are usually responsive ONLY to the primary card holder. They generally will not speak to, or honor requests from authorized users.
Answer If you are not signed on as a responsible party you would only need to pay for the card if purchases were made after the death of the primary cardholder. B…ut you might want to verify that with a lawyer. Answer The card payoff might be the responsiblity of the estate, meaning that if life insurance or other assets were present at the time of death, the estate would be required to pay off all debts before any money was given to the beneficiaries.
Answer No, credit card accounts are not transferrable. It might be possible for the person to become a joint account holder, but that would depend upon the …card issuer's lending policy.
If you are an authorized user on a credit card and the holder files bankruptcy are you responsible for their balance?
Answer No, authorized users are not responsible for debt incurred on such an account.
Can you be responsible for the primary user credit card charges even when you were removed from being an authorized user?
Answer If you were only an authorized user and not a joint account holder, you should never be responsible for the primary account holder's debt.
If a person has been added as an authorized user in the past on a credit card and the primary card holder has requested they be removed as an authorized user will the account discontinue being reporte?
Yes. Cancellation of debt is the same as income. Discussed many times here, frequently with Qs like write off or charge off in them. A 1099-C is given by some…one who has discharged or forgiven a debt to you. It is reported to the IRS by them on that form. (So your reporting it is telling them something they already know). As this constitutes taxable income to you, you must account for it on your return (and estimated payments before the filing). Further explanation: Lets start with a basic tax concept: If you receive something of value (from someone other than family), you have received a taxable income. (The one giving it rightfully has an expense). For example, remember the Oprah Winfrey thing where the audience got cars� And then found out they owed taxes on the value of the cars. In fact, when Oprah stepped up to pay the tax for them, she had to actually pay more than the tax on the car, (called a gross up), as the money she gave them to pay the tax is also taxable. Hand in hand with that, and the example above, if you get a loan, it is NOT taxable income. The money was exchanged for the equally valued promise to repay. So taking the example above, if a buyer receives the $100 merchandise and gives $100 value for it, obviously nothing income taxable to the buyer. But in this case the buyer receives the $100 of value and say makes a deal in year 2 that if the $100 promise it gave is forgiven for a payment of $75 sent today (frequently offered with words like "because it's all I have and otherwise you ain't getting nothing�."), then the $25 is considered a cancellation of indebtedness. COD income is taxable to the recipient. It isn't a loan/exchange of value anymore, it's a gift of value, and value, as in Oprah is taxable. While no one likes to pay tax, it is the correct outcome. The advantage is the debtor doesn't owe anything anymore, other than tax on the gift. So, simplified again: Receiving money is taxable. Receiving a loan isn't. Receiving a loan, and then saying it wasn't a loan (no repayment), so your just getting money that you don't want to pay taxes on, simply doesn't fly.
If you are a authorized user on a credit card and the primary holder is not paying the bill can the authorized user be held responsible?
No. Authorized Users are NOT liable for the debt, only the PRIMARY on the account is liable.
If you are an authorized user on a credit card and the primary holder dies are you resonsible for the debt?
An authorized user on a credit card can be responsible on an account in which the primary card holder passes. The creditor looks at the situation as the authorized card ho…lder was able to make purchases with the account, and should be held liable, even in the event of the primary's death.
Is an authorized credit card user responsible for credit card debt if the primary card holder declares bankruptcy?
No. The card holder is responsible for all debt on the credit they extended to him. (You may be responsible to the credit card holder for the debt he incurred for you, if …that was your agreement).
If you are an authorized user on your husbands credit cards and you are getting a divorce can you be sued for the balance if he is incarcerated?
No. As an authorized user, you are not legally responsible for his debt. Now, credit score wise, even though you did not create the soon to be bad debt, it still shows up on… your credit report.
Possibly. If the business refuses to authorize the charges, the card user could be held responsible. If the card user signed an agreement of accountability, he will definitely… be held responsible. Your best course of action is to try to work with the business who contracted the card to resolve this.
NO. Only the primary and/or joint owners are responsible for paying the owed balance, even if all charges were accrued by an authorized user. They are also the only ones 1) he…ld accountable if the bill is not paid and 2) whos credit rating is affected.
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