What Does Joint Debtor Or Authorized User Mean on My Credit Report

If you and your spouse are considering whether to file bankruptcy together or not, there are many things to consider. However, you should first look at your credit report to determine if you have joint debt or if one spouse or the other is an authorized user on a credit account. A joint debtor is a person that equally liable for the debt. So if one person fails to pay the debt, the joint debtor is responsible to pay it. But the same is not true if you are simply an authorized user of a credit card. In that case, only the person designated as the individual debtor is responsible to pay the debt. An authorized user cannot be held responsible to pay.

               If you are joint debtors, you will need to file a joint bankruptcy. Why do this if one of you is a stay-at-home parent with no outside income? Because when you file bankruptcy on your debts, the debt obligation is removed only as to the person who filed. So, if you file bankruptcy having joint debt with your spouse, the debt is gone for you, the filer, but not for your spouse. The credit company will look to the joint debtor, i.e., your spouse, to collect the debt. That collection could take many forms including taking a judgment for the debt and putting the judgment against your home, if the joint debtor is on the deed.

               If your spouse is simply an authorized user, then a credit company cannot collect from that person. If you have decided to pursue bankruptcy, it is a good idea to close the accounts that have your spouse listed as an authorized user or to contact the credit company and withdraw your spouse as such. That way, if you do file a bankruptcy, it will not have any negative effects on your spouse’s future credit.