Co-Debtors And Authorized Users In Bankruptcy

  • Co-Debtors

Co-Debtors And Authorized Users In Bankruptcy

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It often happens that people filing for bankruptcy jointly owe debts with other people. Whether these people are Authorized users or Co-debtors, determines their rights and obligations.

A co-debtor is a person who signs a debt with another person. This means that a co-signer is a co-debtor. There is a separate section for co-debtors in all the bankruptcy petitions.

In bankruptcy, your personal liability on a debt can be removed but the liability of your co-debtor remains the same. Thus, the co-debtors get a notice when a bankruptcy is filed and their obligation to pay remains intact while the person filing for bankruptcy can be free from those liabilities.

On the other hand, authorized users are the ones who only have the authorization to use the debtor’s credit. Thus, they are different from co-debtors. Their credit report doesn’t show any obligations as they don’t use their own credit. In most of the states, including Florida, these users have no debt liabilities despite signing for the transactions. So, they no liability even in case of a bankruptcy filing by the debtor.

Owing debt liabilities are not always distinct. Thus, it is advisable to hire an experienced bankruptcy attorney before making any decisions regarding bankruptcy. You can visit www.recoverylawgroup.com or call on 888-297-6203 to consult the Recovery Law Group, the best bankruptcy attorneys of Los Angeles & Dallas, TX.


2019-11-12T12:42:32+00:00