Credit Card Co-Signer

[lzurinsky]

What is the name of your state (only U.S. law)? Michigan

I have a friend who has a credit card debt with an ex. He pays the credit card. But he might have to claim bankruptcy. Would his ex be able to sue him for this credit card balance if he claims it in his bankruptcy? This credit card was used to purchase a large item that he had possessed. Ex had co-signed. I know that the credit card company will go after her if he claims bankruptcy.

[bigun]

Was he specifically assigned the responsibility to repay this debt in the divorce decree?

[seniorjudge]

I just want to make sure I understand your question:

You and your ex have a credit card together.

Both are liable on the card.

You are going to file bankruptcy.

You think the credit card company will then go after her.

You want to know if you will have to pay the judgment off to her.

Is that a fair restatement?

[zacjones99]

I hope you don't mind if I chime in here too but I am also in this situation, where my ex has co-signed for a credit card and I will be declaring bankruptcy. The purchases on the card were my own and whatever happens from this I feel obligated to make whatever payments are needed to relieve her of this debt. We have tried to remove her as a co-signer but the bank will not allow it.

If I filed a chapter 13 and perhaps 50% of the debt on that credit card remained after 3 years of payments, would she then be responsible for the remaining 50% of the debt plus 3 years of interest and fees? Or does the bankrupcy and payment plan freeze the accumulation of interest and fees on the account?

What about the credit report? I understand that my credit report will be frozen while I declare bankruptcy, but what about hers? She has no intention of declaring bankruptcy.

Would a divorce decree be able to remove her as a co-signer if it is determined that I am to assume the debt?

We live in California, and very much appreciate any information this community can provide. Thanks. Zac.

[bigun]

Your codebtor will be protected by the automatic stay in a Chapter 13 filing. But, unless the repayment is 100% the creditor can come after the codebtor for the balance once the bk is discharged.
Nothing in the bk prevents you from paying whomever you please post bk. This is the time for a bit of bk preplanning. How much is owed on this card for starters?