Can parents bankruptcy affect me, their son?
My parents filed for bankruptcy about 4 months ago. Me and my Mom were on a credit card together through Fifth Third Bank. She was the first and i was a co-signer. She went through the bankruptcy and it was approved. I never once got a call from Fifth third asking me if a would be taking on the debt as a co-signer. Or any letters. Went to Wal-mart for a t.v. and filled out a credit application. Denied. My credit score is good and i have never been denied in the past for anything. I have a dicks sporting goods card, a value city card, a firestone card. Could the bankruptcy have a negative impact on my score. How is that fair if they never contacted me? Why does it affect me as the co-signer, if i did’nt file for br she did? Is this right? I have never been late or not paid any payments on any accounts. EVER!!!!
The creditor will come after you, the co-signer, for any balance the responsibility for which your parents received a discharge. You now owe your mom’s credit card bill (plus any late fees, penalties, attorney fees, etc.).
Take home point: be careful what you co-sign.
The debt could be appearing on your credit report inaccurately, i.e., making it appear as though the bankruptcy filing was yours. Get a copy of your credit report and look to see what’s on it.
What probably appears right now (if it is correct) is your mom’s bill and an indication that it is 120 days late (since it hasn’t been paid at least since her bankruptcy filing). Get in touch with the creditor and make arrangements to bring it current.