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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).

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โˆ™ 2009-04-23 04:20:21
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Q: Is an authorized credit card user responsible for credit card debt if the primary card holder declares bankruptcy?
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Related questions

Are you responsible for the debt if you are a cardholder if your fathers files bankruptcy and he is the primary cardholder and has paid all bills?

An authorized user, which is all you are - he is the actual card holder - is not responsible for the bill.

Is a primary borrower's mortgage or credit affected when the co signer on a loan declares bankruptcy?


What happens when a cosigner declares bankruptcy-not the primary owner?

Nothing unless they filed on your loan.

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.

Can you be responsible for the primary user credit card charges even when you were removed from being an authorized user?

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.

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?

No. An authorized user is not responsible for credit card debt in any situation. Sorry, I failed to mention that the exception is if the "AU" is a spouse and the couple reside in a community property state. What if the authorized user charged on the card? Would he be held responsible for that?

If the primary cardholder is deceased and the authorized user is no relation and not responsible for debt will this affect the authorized user's credit if it is not paid?

AN authorized user cannot be held responsible for a primary holder's debt in any case. Only a joint holder can be liable for the debt. YES OF COURSE

If the primary card holder gives a friend a secondary card to use is the secondary user responsible for the dept or is the primary card holder solely responsible?

It depends if the secondary card holder is a "Joint Account Member" or a "Authorized User". The joint account member is responsible for the balance, the authorized user is not.

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 holder was able to make purchases with the account, and should be held liable, even in the event of the primary's death.

If you are a secondary card holder and the primary card holder declares bankruptcy how does that affect your score and what if you cancel your account before he declares bankruptcy?

If the BK filer is allowed to discharge the debt a joint account holder who is not a party to the bankruptcy becomes solely responsible for the entire amount. Cancelling or closing the account will not change the fact that the person will still owe the debt and it will eliminate the possibility of said person to negotiate terms with the lender if it becomes necessary. If the joint account holder continues to meet the required terms of the account agreement his or her credit score will not be negatively affected.

Can a credit card company report bad credit on an authorized user's credit report after the death of the primary card holder?

if you are an authorized user on the card then you are responsible for the card too. so yes they can

If an authorized user on a credit card transfered balances to that card and the primary user of the card files for chapter 7 will the authorized user still have to pay or will the debt be fully wiped?

I'm trying to follow what your really saying: Presumably there is a "primary" ...that would be the one who applied for the credit and signed the agreements to pay the charges. That person requested a card for another person to use, under the primaries credit agreement, and agreed to be responsible for the charges that person made...the credit card company went along with this request...but it was NOT extending any credit, or even had any type of agreement with this other authorized signer. All charges by that person are the responsibility of the primary...the debt from using the card is not to the second (authorized) person...and any debt (if there is one you can prove), would be by the authorized user to the primary...if they had an agreement that the authorized would pay for any use. The primary would be a creditor of the authorized in that bankruptcy. The credit card company isn't a part of it...the debt remains with the primary...regardless of any payment or not he gets from the authorized party or their bankrutcy. And alternatively, if the authorized person made charges and the primary goes BK, that charges are part of the primaries BK, (and may be discharged). Again, if there is an agreement that the authorized would pay those charges, that "receivable" or asset to the Primary must be reported as such in his BK filing.

Is the cosigner the only one responsible on the loan?

The primary borrower is responsible for making the payments and adhering to the terms of the lending contract. The cosigner is legally obligated only if the primary borrower defaults on the lending agreement or files bankruptcy (chapter 7).

Will your credit be damaged if you as a cosigner continue to make payments on a car loan when the primary signer declares bankruptcy?

GET the car(if you want it), make arrangements with LENDER to do what they will expect you to do anyway....NO DONT pay for it and YES it will be bad

Does co-buyer mean the same as co-signer or is it just to show how much income is in the home?

No. A co-buyer owns part of the property, how much a portion depends on how the title is worded. A cosigner is pledging equal responsibiliy for the debt if the primary borrower defaults on the loan. Even if the primary borrower declares bankruptcy the cosigner might still be responsible for a portion or all of the debt.

How does it apply to a authorized user on the account and the primary dies and the card is used after the death who is responsible for the debt even if the deceased has no monies in any estate?

The authorized users who had full access to the account are both equally responsible for the debts incurred. The secondary user most likely used the card before the primary became deceased ... just because the primary account holder dies does not dismiss the responsibility of the secondary account user.

Auto Co-signer files bankruptcy does primary have to keep the loan?

The loan becomes at worst like a single-signer loan. You are free to refinance or pay it off. Which you were, anyway. The only entity affected by the bankruptcy of a cosigner on a loan is the lender.

If a cosigner files for bankruptcy does it put the primary signer under bankruptcy too?

No, the primary signer is still liable. But if a loan is not dischargeable, such as a student loan (actually is is extremely hard to discharge), both the primary and co-signer will STILL be liable after the bankruptcy

What are the rights of a cosigner when the primary filed bankruptcy then didnt pay the bankruptcy so the bankruptcy was dismissed?

As a cosigner, you are not at all protected if the primary signer files for bankruptcy. In many cases, filing for bankruptcy relieves the primary signer on the loan from his obligations towards the loan, at which point the lender will turn to the cosigner for payment. You'll either have to pay the loan or file for your own bankruptcy (if necessary).Unfortunately, you're stuck with the loan regardless of whether or not the primary signer successfully completes his bankruptcy filling. You may want to contact a bankruptcy lawyer for some additional advice or assistance.

How does the authorized users credit impact the primary users credit?

When adding an authorized user to your account, you are agreeing to any and all charges that person places on the account. If the authorized user chooses to abuse the account, such as making purchases beyond the amount that you are able to pay or by exceeding the limit of the card, the negative effects goes against the primary users credit. The authorized users credit is not affected at all and they are not responsible for payments. So be careful who you chose to add to your card.

If you are an authorized user on a credit card and the primary cardholder dies and you use the card after they die are you responsible for the entire debt?

It is possible that they would hold you responsible for the entire balance of the account. It could be seen as a fraudulent conveyance to continue using an account after someone has died. The company has the legal right to be notified of the death of a card holder so that it can file a colleton judgment against the estate, if there is one. I would advise youto stop using the card immediately and seek legal counsel, just in case. No, as an "authorized user" you are not responsible for the balance.For more info: TO ABOVE ANSWER: The question pertains to if the PRIMARY IS DECEASED and the authorized user continues to use the card. Yes, while the primary card holder is ALIVE, the authorized user is not liable. And the authorized user will not be held responsible for charges incurred before the primary has died. It would seem extremely unlikely, however, that banks or law would permit an individual to continue to use a line of credit of a dead person if they aren't legally responsible for repayment.

Is the primary loan holder's credit affected when a cosigner declares bankruptcy?

CR??? NO. The loan?? Possibility. that's why the lender required you to have a co-signor. Your CR is not very good. They could require you to get another co-signor or demand payoff.

What happens when the second home is placed in bankruptcy by mistake and is not your primary residence?

what happens when you file bankruptcy and your second home you own as an investment is placed in the bankruptcy by mistake the house getsfor closed on and sold but no title search is done to see that there are actually two mortgages on the house who is responsible for the second mortgage

What happens to the primary if the co-owner files for bankruptcy?

The primary would be held liable for the debt.

If Medicare is primary who is responsible for secondary copay?