What happens to authorized user when account holder files bankruptcy?

Filing bankruptcy will have no impact on the account holder if you file bankruptcy. An authorized user doesn’t share a credit report with the account holder and thus, filing bankruptcy will not have any bearings on the account holder.

How many authorized users can be on a credit card?

The number of authorized users that can be added on a credit card varies by issuer and card. For example, American Express allows four authorized users to be added to the American Express Everyday Preferred card. Chase allows up to 99 authorized users on an account for its business cards.

Can I be an authorized user while in Chapter 13?

Can I be an authorized user on a credit card while in chapter 13 bankruptcy? You can be an authorized user on someone else’s credit card. If you have not signed any agreement, whereby you are obliged to pay the balances on that account, the debt is not yours.

What happens to my credit if my authorized user files bankruptcy?

Because your authorized user isn’t financially responsible for charges to the account, your credit report won’t be damaged if he or she declares bankruptcy. However, if your joint account holder files, the credit account would be included in the bankruptcy proceedings.

What happens if the authorized user or joint account holder goes bankrupt?

However, if your potential authorized user declared bankruptcy after racking up a large amount of credit card debt, it’s a good idea to consider whether you trust his or her judgment when it comes to spending. You’ll be liable for any charges made on your credit account. What happens if my current authorized user or joint cardholder goes bankrupt?

What happens to an authorized user of a credit card?

An authorized user is someone who is allowed to use someone else’s credit card but can’t make any changes to the account and isn’t liable for payments. An authorized user can charge on a credit card without being financially responsible. Instead, the account holder is responsible for the debt.

Who is responsible for debt owed on a credit card?

Community property laws in those states treat authorized users as joint account holders, and joint account holders are equally responsible for debt owed on a credit card. Clearly, being an authorized user has its perks as well as drawbacks.