Will I mess up my parents credit with my bankruptcy?

[Kaydee84]

Hi Everyone.

I am about to file for chapter 7 but I am worried. I am an authorized user on my parents Macys Amex because they are older now and frequently, I make purchases for them. Next year, they will be looking to purchase a new home. Is there any possible way by any reasonable stretch of imagination that my bankruptcy will affect them? I would hate for my problems to make things difficult for them. I also got my USAA membership through my dad but he was not on any of my accountss at USAA. USAA will be included in my bankruptcy. USAA can't hold my father accountable for my debt, can they?

Thanks in advance for your response.

[RCFL]

i don't think it'll do anything to your parents' credit as you're just an authorized user. Just like if they filed for BK, you wouldn't be held responsible.
If you're worried, just remove yourself as AU first and then file.

[Anonymous]

I agree with RCFL. 

If you are not co-signers on each other's credit accounts, there shouldn't be any issue. 

[Kaydee84]

Thank you both.  I figured that would be the correct answer but just wanted to see if anyone experienced anything different. Appreciate the replies!

[pizza1]

my advice is to remove yourself from any AU acts you're on, as there have been issues in the past where the lender "picked up" the AU BK, and then closed the original cardholder and closed the acct and reporting it as included in BK....

Remove yourself from all AU before you file, or have your parents do it, then re-add you later down the road like a few MONTHS after your discharge is completed.

and no, your dad won't be liable for your BK...I filed on USAA as well, same situation.

[Kaydee84]

Everything I've read says that it would be fine but since they are buying a home next year, I can't afford any mistakes. Hearing that you've seen some people have a problem definitely concerns me. I asked my parents to remove me as soon as they can. After they remove me, is there a certain amount of time I should wait before I file?

[Anonymous]

I would suggest at least one full billing cycle after they remove you (if you can wait). I had a couple of accounts that I had closed in June prior to bankruptcy because they were 0 bal, and one of them picked up on my BK and then decided to say that it was included in the BK. 

(I have the letter that they sent a month+ prior that said they were sad to see me go, so I'm planning on disputing it and having the pmt history back on my acct.) 

[Kaydee84]

Thanks

[Anonymous]

Hello! I know this is an old post but i am in a similiar situation. My husband is filing for bankruptcy and yesterday i removed him from my accounts as an authorized user. His bankruptcy attorney had added my accounts for which he was an authorized user in the petition , thankfully i caught it just in time and made him remove those accounts . He will file this monday . I removed him as an authorized user yesterday . Credit reports have not updated but all my accounts updated the removal immediately. So OP in your case did your parents have any problems after you filed ? Do you guys think my accounts will be fine if my husband files on monday, now that i have removed as a n au?

[Kaydee84]

I actually don't have the answer to this yet. I just filed a couple weeks ago. My attorney mistakenly included the account and I failed to catch it. I was removed from the account back in November 2016. Now I'm worried all over again!