Filing for bankruptcy – Am I required to list my joint credit card account?
I am going to file chapter 7 bankruptcy in Maryland and I have a joint credit card between myself and my son. What I would like to do is keep the credit card so I still have something for emergencies after I file bankruptcy. Do I have to list the joint account when filing bankruptcy? Because I would like to keep it open and keep making the payments as usual, and if I did list it could that effect my sons credit, even if he makes the payments, since he is joint on the account?
Posted February 1st, 2010 in File Bankruptcy Yourself. Tagged: chapter 7 bankruptcy, credit card, emergencies, filing bankruptcy.
The short answer is YES. You must list ALL of your debts you are liable for. This includes accounts you are the sole account holder, as well as Co-Signed or Joint accounts. You don’t get to pick and choose what accounts you want to list.
You will be removed from the account, making your son the only one liable for any debt on the account. While it is hard to say exactly what the creditor will do, there is a very good chance that they will close the account once you file.
You have to remember that bankruptcy is a last resort. The thought that you want to keep an account open for "emergencies" is not going to help you. As soon as your BK is discharged you will have several offers of new credit, although at higher rates and fees. Looking into a secured card is also another choice.
February 1st, 2010 at 2:13 pmThe only way you can keep an account open if it has no balance on it. Then its up to the card company if they will let you keep it.
February 1st, 2010 at 2:13 pmOC is right your son is stuck with the joint debt.