Authorized and Liable?
Does Chris have to worry about being an authorized user on his wife's Discover card, when she's filing bankruptcy?
QUESTION: Chris is getting a divorce. He is an authorized user on his wife’s Discover credit card and is filing bankruptcy. How should he deal with this as far as his credit bureau report goes? Dave says it shouldn’t matter too much, for one reason.
ANSWER: An authorized user doesn’t make you liable. When the account is closed, there is nothing that you’re authorized on, so they should take it off. You’re not filing bankruptcy and you’re not liable in any way. If one of my team members was given a company card by me and I allowed them to sign it, they are still not liable for the debt. If the company filed bankruptcy, they are not responsible for the debt.
It’s all right to show that you have an authorized user there. Discover will act like you’re responsible for this, but tell them to bite your ankle. Tell them if they report anything on your credit bureau report, you will sue them.