Joint Bank Account w/ Mother

[jonesmr160]

Well, I recently filed about a week and a half ago. Thought I had all of my ducks in a row, and I get a panicked phone call from my mother this morning. Turns out that my name was still attached to her bank account from its opening in 1996 - she had added me when I was still a teenager in case something happened to her, and she had the same account open as of today. I had no idea that I was still on this account. They ended up closing her substantial line of credit that was attached to the account (which was in the form of a Visa card which was used as overdraft protection also) because of me, yet, I never signed anything or agreed to be attached to this Visa card. Neither the bank account, nor the credit account, showed up on my credit report when I looked at it the last time. My question is, what is going to happen now? My lawyer told me to find out if I was a co-debtor or simply an "authorized user" and then she would advise me further, which I am waiting to find out, but I am really worried that I've basically screwed my mom over without even knowing I would. Does anyone have any insight into this at all? I am really worried about her credit being ruined because of me, and all of this reading I've been doing is pointing towards her not getting her line of credit back. Thanks.

[ccsjoe]

Unfortunately your name being on her account likely means she will not get her line of credit back in its present form. From what US Bank told me in a similar situation, she needs to open a new account in her name only and then apply for LOC. The BK will not come up in her record, however, if the new account she applies for is with the same bank, they will see her previous accuont had links to a bk and she will likely have to answer some questions.

[jonesmr160]

Hi ccsjoe, thanks for your reply. I have one quick question, though...when you say that the "BK will not come up in her record" do you mean it won't come up on her bank record or that it won't come up on her credit report? Thanks again!

[backtoschool]

The bk will not come up in your mother's credit report, but it will affect her banking relationship at the bank where she has the account that you were on. She should open up a new account in her name only, either with that bank (and expect to get a substantially lower line of credit) or open a new account at a different bank. The problem is that the bk might show up in chexsystems for her as well as for you which will affect her ability to get large lines of credit, etc. She may have to write to chexsystems to see if the bk on the account is showing up on her chexsystems file and then dispute it off if it is. Most banks use chexsystems to determine eligibility for opening up bank accounts, etc. Chexsystems mostly reports bounced checks, etc, but they also report levies on accounts and bks sometimes.

[jonesmr160]

Thank you backtoschool, I really appreciate your answer.