Hi all, Went to my lawyer today and finalized paperwork for filing chapter 7. My Lawyer asked if I had any balance transfers between cards. I told her I had some last summer. When I got home I realized that up until last November I was an AUTHORIZED user on my Mom's account. The debt is hers, and she transferred the 5.500 balance to another card in her name only. Since I was an authorized user do I need to report this balance transfer activity. Like I said, not my debt, it shows on 1 of my reports, and the account is paid/closed.
Mike, It is somewhat tricky....here is the legal answer...yes you should tell your atty that the debt is not yours so the paperwork can be amended. Here is the practical suggestion...leave it be. CC companies are "unsecured" creditors. That means they are at the bottom of the food chain when it comes to a bk filing. Therefore they don't even bother to file a "proof of claim" or attend the 341A meeting of the creditors as they don't have the time or personnel to waste it on doing something that is a lose-lose for them. In the worst case scenario (and I have never, ever seen this happen in all the 6 years I was a bk paralegal) if they object to the debt at the 341A meeting (which is highly unlikely they will even attend) you could basically just say you were an "authorized user" and the debt was on your credit report so you just assumed it was yours. The trustee would just tell your atty to amend the filing. It will cost you $20 to amend it. That's about it. If you take the first option the debt will stay on your credit report and you will have to validate,validate and validate then dispute, dispute, dispute to get it off. If you take the second option it should fall off as IIB or included in bankruptcy. The choice is yours. clc disclaimer: I am not an attorney. Any advice I give shall not be construed as legal advice.
Thanks CLC for the response. I think you misunderstood my responsibilty of this debt. The debt is my Mom's. I used the card years ago, paid my share back to her, and the rest of the debt is hers. I just needed to know if this was an issue because my name was on it as an authorized user when she made the trasfer. This card was not included in BK because its hers and it is paid. Thanks
I hope it says "paid as agreed" and closed on your report. This would be a positive tradeline. But if it says "paid-closed by credit grantor" it is a completely different matter. This could indicate that your mother paid it after it went to collections. This would be a negative tradeline on YOUR report. clc
