Legal Question in Bankruptcy in Alabama

filing bankruptsy as authorized user

I am authorized user on 3 accounts with my mother-in-law. The accounts have been maxed out and now I can not afford the monthly payments. She is threatening to prosecute, is it possible to file bankruptsy if the accounts are not in my name? I do not own any property and am struggling just to pay day to day bills? Any help is appreciated.


Asked on 11/28/05, 11:18 am

1 Answer from Attorneys
Sterling DeRamus Sterling L. DeRamus, Attorney at Law

Re: filing bankruptsy as authorized user

It sounds like you are legally obligated to pay the debts as a secondary and authorized user on the account. Filing bankruptcy is an option. Unfortunately, recent changes to the bankruptcy law (say a big thank you to the Republican jerks who pushed this bill through!) make it very difficult to file Chapter 7 Bankruptcy now. You may still qualify depending on your income and whether you've paid all of your taxes over the last few years. You would need to undergo debt counseling first.

I would advise not paying if you can't. A lawsuit will take a while, and at worst would result in a garnishment of 25% of your paycheck - which I'd bet is less than what your paying her now. You could also file a Chapter 13 bankruptcy and pay her off about 10% of your after tax income. In other words, you have options.

Sterling L. DeRamus, [email protected]

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Answered on 11/28/05, 4:32 pm


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