Question Non Filing Spouse and joint dept store credit card still paying

[Hlc]

I will file chapter 7 around the first of Dec. My spouse is not filing. We have one joint account and I don't want to harm her credit. What should we do without causing any problems with my chapter 7. Balance on account is $ 1,800 and payments around $ 90.00.

1 - Continue making minimum payments.
2- See if she can get the balance that is owed on our joint card transfered to a new account for my spouse.

Any suggestions, and previous experience with this issue would be appreciated. I just don't want to cause any problems with the ust or for me and my spouse.

Thanks

[scorpion35]

she should open a new credit card with some bank and transfer the $1800
if u leave it as is right now and u file her credit will suffer big time
but maybe i am wrong

[ccsjoe]

No scorpion, you are not wrong. She either needs to have OP removed from the account OR open a new account in her name only and do a balance transfer, then close the joint account. You will need a couple months pre-filing in order for credit reporting to catch up, otherwise her credit will be harmed.

[Hlc]

Please any other information would be appreciated.

[SunshineGal]

Ideally, you want to transfer the balance to her name only and wait *at least* 90 days to file to avoid preferential payments. Otherwise, as long as you continue to make the payment on the account she should be okay. You have to include the card in your bk, but she is not filing so the account should still report as paid as agreed. However, it's probable the creditor will close the account which could damage her score due to percentage of available credit utilized. Have her pull her credit after filing so she can make sure the card is reporting as it should be.

FYI - If the account is joint she probably can't get your name removed from the account. However, it may be worth a shot for her to call the creditor (right before you file, assuming you don't pay it off and wait the 90 days) and explain the situation. They may open a new account for her in her name alone and move the balance.

[MSbklawyer]

I disagree with the earlier responses to the OP.

If wife is not filing, you don't need to do anything. Just have her keep making payments just like she always has. Your bankruptcy won't affect her joint obligation to pay the account; only your obligation to pay the account will be discharged. A spouse filing alone does not affect the other spouse's credit.

[stormy]

My .02 for what its worth.

My divorce was final in January and I filed bankruptcy in August. There were several credit cards that were in mine and my Ex-hubby's name so I claimed them; the cards were in his name and I was an authorized user.

Discover immediately suspended HIS on-line access; closed the account and sent him a letter saying he was responsible for the entire $7800 balance. Okay, that's fine; he expected that. What he didn't expect was for Discover to jack his interest rate up to 29.99 percent!

So my filing did effect him; no idea what it did to his credit score but he was already trashing that by himself by making late payments on the 1st and 2nd mortgage.

[researchnerd]

One spouse filing may not impact the other spouse's legal obligation to pay a joint debt, but even simple non-payment of your bills can affect your spouse's credit. Example:

DH and I had two separate credit cards with BOA - one in his name, one in my name. Neither of us was an authorized user on the other, they were completely separate. DH stopped paying his CC bills due to unemployment, but I continued to pay mine faithfully every month.

DH did not duck the BOA collectors; each time they called, he said he was very sorry but he was unemployed and had no income. After a few months, BOA started calling me about DH's account. I told them I could not help them; that it was his account and I could only afford to pay mine. They responded by closing my account, despite the fact that I was never late and had never missed a payment. This was a couple of months before we filed BK.

OP, I understand that you don't want your BK to affect your wife's credit, but there is a good chance that it will. Transferring the balance to an account in her name only, so you don't have to include it in the BK, seems like the safest solution.