Co Signers Credit ??

[becky0907]

Hello! We filed Chapter 13 bankruptcy in September of 2010. Prior to filing, we ensured that a credit card was paid off due to my father in law being a co signer. The credit card company is saying it wasn't completely paid and we still owe $4. They are now reporting to all credit bureauas that the account was included in a chapter 13 bankruptcy. We have disputed and disputed and they still refuse to take it off our credit. The company tried to make a claim but the bankruptcy court disallowed it by order saying it was not included in the bankruptcy. I really don't care but I am worried sick about my father in law's credit.

So, during Chapter 13 does the joint account holder have a negative notation on their credit? Thanks for any insight or personal experiences you can share with me!

[lrprn]

Just pay the $4 and whatever extra pennies of interest are owed now. It's a shame that it wasn't apparent before you filed that a tiny amount remained on the card, probably interest that was compounded by the day after the last bill went out that you paid.

As soon as the card is paid in full, if your father's credit report indicates bk on that credit line, he can put an explanation on his credit report that he's a card co-owner only and not the bk filer. He can also explain that only $4 was owed when you (not he) filed.

If as you say the cc company was not listed on your creditor list when you filed, then I'm not sure where things fall legally with the cc company listing their card as "IIB" (included in bk). Ask your lawyer what legal avenues there may be to pursue this. Sometimes a sternly worded letter from your lawyer on his/her office letterhead after paying off whatever is left on the card is enough to convince a cc company to change the credit line. It all depends on the creditor and how far you are willing to pursue this.