Moral obligation

[doggy4620]

I am being sued by two creditors. These accounts were opened by an immediate family member without my knowledge or permission. I have retained an attorney to prepare and file for bankruptcy for debt relief. I believe, even though I did not open these accounts, I feel morally obligated to pay something. I have decided to file for chapter 13. I really have no proof, other than my word, that these accounts are not mine. I do not want any judgements against me. Comments?

[shipo]

If you didn't open the accounts then the signatures on the contracts are not yours; ask for copies of the contracts and tell them the signatures are not yours.

[justbroke]

Morals are a tough thing for those who believe in a higher power or are spiritual. My ethics requires me to pay my own debts, but they don't require me to pay the debts of someone who betrayed me. In this case, where someone betrayed your trust and used your good name (and credit), the same thing applies. I don't think it immoral that you don't pay the debt of a thief.

What you may be feeling is pity for the thief since they are within your immediate family. You don't want them to be punished for what they did wrong. However, they need to come forth and a.) apologize, and b.) make amends to the best of their ability. This is just me speaking, but I believe that you think that if you came forward, filed a police report for identify theft, and claimed fraud with the creditor, then that immediate family member would be in jeopardy. Perhaps that's where your morality kicks in; you want to protect that family member from a serious criminal charge. I would not call it a question of paying, but a question of protecting the family member.

In other words, the moral question is of whether to not to protect the family member thief from prosecution. It's a difficult question but morally I may want to protect the family member thief from prosecution, but, also morally, I should not feel pressured to pay for their misdeeds.

As for you filing bankruptcy, don't file Chapter 13 to pay back a debt that is not yours. If you do end up filing, file a Chapter 7. I don't even think you could file a Chapter 13 unless you could actually create a plan and a means test that supports that you should be in a Chapter 13. You can file the Chapter 7, discharge the debt as to you personally and then, if your morals and ethics command that you pay the creditor, then there is absolutely nothing stopping you from doing so after the Chapter 7 discharge.

Speak to 3-5 bankruptcy attorneys and tell them the absolute truth. They'll probably say the same thing and push you away from a bankruptcy.

[Johnworker1]

From my experience you are technically a victim of a crime. It is called identity theft around here and in the cases I have seen it started with a police report and a report to the creditors (who know this happens all to often) and a sometimes long process that involve you and the 2 entities to absolve you of financial responsibility that can be long and complex path.

The way I see it is the moral obligation is to start a process to say these are not your debts and you should not to have to pay them. Whether the creditors/law enforcement find the culprit and whether they go after them is their dilemma not yours. But if you feel some obligation to pay because you know the culprit and/or feel sorry for them I can understand.

One thing I will mention is without consequences it is very difficult for those that do wrong to change their ways especially if they profit off of them. Will that person continue doing this and maybe do it to someone who can't pay or recover or someone close to you that you may ultimately feel guilty of not acting. Or worst yet will they graduate from this and go into heavier crimes? One thing I can say is I absolutely hated punishment but I can acknowledge it taught me and saved me from worst consequences.