Legal Question in Bankruptcy in California

If she's liable on the debt vis-�-vis the credit card company, then she is a codebtor. That doesn't seem to be the case, but you must verify the facts. Another question is whether she is liable to YOU. In your bankruptcy papers you must list all monies owed to you and such funds are an asset that should be exempted.

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If your friend was not obligated under the credit card agreement to pay the charges accrued on the card (all the charges, not just the ones she made) then she is not a debtor with respect to that account, therefore not your co debtor. From the information given it appears that your friend was merely an authorized signer on the account, not an actual borrower.

Going forward if you have a question about the account then ask yourself a series of questions to give you guidance: Do the statements have her name on them? Did the credit card company rely on her credit worthiness before putting her name on the card as an authorized signer? When you removed her name did the credit report company access your credit report to determine if you could make the payments without her? If the answer to this is yes then the friend may be a co debtor.

Did this friend repay the money that was put on your credit card? What was the agreement for repayment to you? You have a 100% obligation to list ANY amount owed to you by other persons. Even if it unlikely you will be repaid, the person that owes you is a friend/family member is not relevant to your obligation to list the debt on the petition and schedules.

If the exemption is available you should also be sure to list an exemption for the amount of money owed as it is considered an asset to you.

The 2005 amendment to the BK code complicated the rules for filing even a simple, no asset chapter 7 BK. Many attorneys in the field stopped practicing BK because it is so complicated and easy to make a mistake. If you have any further questions feel free to call me or shoot me an email to schedule a free consultation. Good Luck!

Dawn R. VanHorn

Attorney & Counselor at Law

www.VanHornLegal.com

(714) 396-4152

(714) 784-2524 facsimile

Consumer Protection Corner- www.vanhornlegal.wordpress.com

The foregoing has been written by Dawn R. VanHorn, Attorney & Counselor at Law. If the designated recipient(s) of this communication have not fully executed a retainer agreement engaging Dawn R. VanHorn and/or VanHorn Legal relating to the subject(s) of this electronic message nothing herein constitutes nor is intended to be legal advice and as a result should not be relied upon as such.