Authorized user on credit card HELP!

How is an authorizd user affected when a primary on a credit card filing for bankruptcy (ch 7)?

I could not remove my name b/f the process began.

Am i responsible for this balance owed on the card? What if card holder states they did not make the charges but the auth user did? can they file charges against me? if so what kind?

am i protected in any way? what if they state i did but did not?

what if there are return checks on the account? ( pymts were made but checks bounced) how does this affect the bankruptcy?

any help and advice is appreciated

thank you

[bigun]

If you are an AU, the owner of the card is responsible for all charges regardless of who made them. They are also respomsible for making sure good funds are available to pay the bills.

[HomeGuru]

Originally posted by wwfann
How is an authorizd user affected when a primary on a credit card filing for bankruptcy (ch 7)?

**both the primary and the user will not be able to use the card anymore.
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I could not remove my name b/f the process began.

**BS. All you needed to do was notify the issuer in writing.
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Am i responsible for this balance owed on the card?

** yes if the balance was due to your charges and more so if you were the joint guarantor.
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What if card holder states they did not make the charges but the auth user did? can they file charges against me? if so what kind?

**In BK, the entire amount would be listed as an amount due under unsecured creditor. So the issue of who's charges they were is a moot point unless the charges were made close to the BK filing date. Then the BK Trustee and or the credit card company may claim fraud. If the Trustee agrees, then he/she can dismiss the BK or rule that the amount due to the credit card company will not be a discharged debt in BK.
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am i protected in any way? what if they state i did but did not?

** then you would have to prove that the charges were not yours ie, through copies of charge slips, credit card statements etc.
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what if there are return checks on the account? ( pymts were made but checks bounced) how does this affect the bankruptcy?

**normally it has no effect unless fraudulent dealings, ie the check writer knew that there was no money in the account and purposely sent the checks in. This could be another fraud claim that the credit card company could make and even raise a fraud scheme issue.
Petitioner planned to charge up cards before filing BK and purposely payed by NSF checks to stall for time with the intent of not paying at all and having the entire amount owed to the credit card company discharged through BK.
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any help and advice is appreciated

thank you

**I suggest you read the applicable BK laws for a better understanding.

Q. How is an authorizd user affected when a primary on a credit card filing for bankruptcy (ch 7)?

A. The cc bank would normally freeze the account (ie no further charges would be allowed.) They also usually place a special "internal status" on the account showing the debtor filed for bankruptcy.

Q. I could not remove my name b/f the process began.

A.. Some will only remove the a/u if the request comes from the primary or secondary cardholder.

Q. Am i responsible for this balance owed on the card? What if card holder states they did not make the charges but the auth user did? can they file charges against me? if so what kind?

A. In almost every case, no. An authorized user is just that. He/She does not have financial responsibility to repay the balance owed. However, if the PM Cardholder asked the cc bank to remove you from the account and advised you not to charge, that could be a different issue all together. Some banks would require that the PM cardholder get the card back, or would close the account and open a new one to prevent new charges.


Q. am i protected in any way? what if they state i did but did not?

A. see response to question 2

Q. what if there are return checks on the account? ( pymts were made but checks bounced) how does this affect the bankruptcy?

A. See quest. 2. However, if you wrote the bounced checks, you should have to pay for the fees incurred by the bank.


Hope this helps.

**This is not intended to be legal advice. I do have significant cc banking experience and have seen cases like this.; however, you should consult the CH agreement and the local laws in your state and those of the primary state in which the cc bank operates.