Overwhelmed

[Mgtobin]

I'm hoping someone can give me some advice here. I had been making payments on 2 credit cards that belong to a family member until recently. I became underemployed & could no longer pay them. The family member can not pay either. One of the accounts has been placed with a collection agency. I don't know what to do. I recently filed Chapter 13

[bcohen]

Unless you are one of the account-holders for the credit cards, or the debt is for things you bought, there's really nothing for you to do. If the credit cards belong to one of your adult children, and the debt is in their name, for stuff that they purchased, then you need to look out for your own financial well-being, and let the chips fall as they may. Don't risk your retirement, or your ability to pay your current living expenses, in order to pay off debt for someone else!

[Mgtobin]

Thanks for your reply. The situation was that I used the cards over the years. All of what is owed is for whatever I used them for. That is why I was making the payments.

[df04527]

Ouch. If you stop paying can they pay until you are back on your feet again? If the accounts become delinquent then their credit will be reported as such and will crash any good credit they have.

[LadyInTheRed]

Did you list your family member as a creditor in your BK and did they file a claim? If not, they should file a claim so they at least get something out of your Chap 13. That won't prevent you from also paying them directly.

I know that doesn't help the immediate situation. Unfortunately, if one of you doesn't find a way to make the payments, it sounds like somebody is going to learn a lesson about letting somebody else use their credit cards.

[Mgtobin]

I know. I know. It's a totally messed up situation. I really screwed up & this is taking a real toll on me. But there has to be some kind of solution. Let me ask this. If they file a claim will collection action still continue against them? Can payments be made if possible from outside the Chapter 13?

[df04527]

I am sorry your in this situation...ugh...never, ever good to borrow money from family or friends but you know that so yes they can and will pursue collection action. Doesn't mean they WILL...depends. As far as the 13 question...i am not a 13 person, hopefully LITR or another will respond to that. hth

Eta: I just re-read your question. If the family member files a claim can the creditor still pursue collection against them? Yes as soon as the account(s) default. For example if family member gets x from your 13 that may not be enough to make the minimum payments to creditor(s)..i don't know...but if it isn't enough they will default the account.

Somehow between you, the 13 and/or the family member you need to maintain those minimum payments and keep both accounts in good standing.