If you’re listed on someone else’s credit card as a co-signer or co-borrower, you’ll need to list the credit card debt in your bankruptcy forms. If you’re just an authorized user, you don’t need to list the credit card on your bankruptcy forms.
Here’s why: Authorized users have been authorized to use someone else’s credit card, but they aren’t responsible for the debt. If you didn’t sign the credit card application, you’re not liable for the debt. So, even though this account may show up on your credit report, you don’t owe the debt so you don’t have to list it on your bankruptcy forms.
But if you’re a co-signer or co-borrower on the account, you need to list the credit card debt in your bankruptcy forms. Being a co-signer makes you responsible for paying the debt, and you must list all your debts on your bankruptcy paperwork. Additionally, you’ll have to list the name and address of the other person that’s on the card with you in your Schedule H.
What if I’m Not Sure if I’m an Authorized User or Co-Signer?
If you’re not sure, it’s always best to err on the side of caution and list the debt in your bankruptcy schedules. The worst thing that can happen if you’re an authorized user is that you’ve notified the creditor unnecessarily of your bankruptcy case and they remove you as an authorized user.
On the other hand, if you’re obligated to pay the debt but don’t list it because you thought you were just an authorized user, your discharge order might not eliminate this debt. You can always contact the credit card company and ask if you’re an authorized user or co-signer. Keep in mind it’s best to not mention your plans to file bankruptcy.