Bankruptcies, Co-Signers and Authorized Users

Oftentimes when people prepare to file for bankruptcy we find that there are other people who appear to owe debts jointly with them. The rights and obligations of these people vary depending on whether they are Co-Debtors or Authorized Users.
A Co-Debtor is any person who has signed into a debt with someone else. A Co-Signer is a Co-Debtor. All bankruptcy petitions have a section dedicated to Co-Debtors.
While bankruptcy can remove your personal liability from a debt, anyone who is joint on that debt remains liable. Because of this, Co-Debtors are given notice when a case is filed and will be obligated to pay of the person filing bankruptcy doesn’t.
Co-Debtors are different from Authorized Users as the latter is only authorized to use the debtor’s credit. They use no credit of their own and the obligation does not show on their credit report. In most states (Florida included), Authorized Users have no liability on these debts even if they signed for the transactions, so even if the debtor files bankruptcy, they have no liability.
Determining who has liability for debts is not always clear. If you are considering bankruptcy and would like to speak with an experienced attorney about these matters, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.