Q: I am considering filing for Chapter 7 Bankruptcy and I have a question about being an Authorized User on my Mom's card.
Back in 2014 I opened up a card online thinking it was under my name, but I ended up only being an authorized user, where my Mom was the primary account holder.
She has never used the account, only I have. All the debt was my doing on the card. I have always made monthly payments on it, and she never has made any payments.
My question is, when I file for Chapter 7, will the Trustee see the payments I made on this account and try and get it back, since I was technically paying an account that wasn't mine, even though my name is on the card and it does show up on my credit report?
A: While you did not have personal liability on the card as an authorized user you should be fine if you can show that you incurred the charges. While you have to disclose payments made within 1 year before filing bankruptcy on account of a debt that benefited an insider, here you made the charges. A trustee might pursue it if you were making a $800/month payment on the BMW your mother was driving. Contact a local bankruptcy attorney and schedule a consultation. They will be able to advise you on how aggressive the trustees are in your location. You can search for an attorney using the Justia "Find a Lawyer" link at the top of this page.
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