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My Bankruptcy is Impacting My Son’s Credit. – Kathy

“Dear Steve,

We filed bankruptcy in January 2009 and we are paying it back through the courts. The question I have involves my son, I was cosigner for him on a charge card from a bank that was included in the bankruptcy the lawyer I used said I had to include eveything that had my name on it but that it would not effect my son. Well when my son went to take out a loan this showed up on his report so my question is what can he/we do about this? The limit on his card was 500.00 and of course he was at the limit. To add to the problem at the time he was laid off of work and was having trouble finding a job and was having trouble paying it anyway but now he wants to fix it. If he pays it off will cause a backlash on me with the courts?

Thank You


Dear Kathy,

Okay, let’s see if I get this right. Your son had a credit card for which you were the cosigner. The card was included in your bankruptcy.

The bank is probably reporting the card as included in bankruptcy but ultimately the question seems to be whose account was it. This seems like an excellent question to call and ask the credit card company issuing the card.

I can see how the card company might close the card if the co-signer went bankrupt and how the card would be reported as included in a bankruptcy. That seems possible under the cardholder agreement.

The issue seems to be that your son needs to establish credit. Since you co-signed for him before it does not sound like he had any to begin with.

I suggest he follow this guide to build his credit.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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