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    jrm004's Avatar
    jrm004 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Dec 2, 2007, 06:08 PM
    Cosigner is filing bankrupt
    I have filed for chapter 7. Before I filed my attorney advised me to list a account that I cosigned for my daughter to have overdraft protection on her checking account. It is in the form of a credit card. So I did and now my daughter tried to use the card and it was declined. She called the bank and they told her that they already "charged it off". Is this going to hurt her credit? It was supposed to only take responsibility off me because I cosigned, not do anything to hurt her. What do you think? I have yet been able to get ahold of my attorney.:(
    suepick517's Avatar
    suepick517 Posts: 11, Reputation: 2
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    #2

    Dec 4, 2007, 01:08 PM
    They shouldn't have closed out the card. Depending on where it is from, a credit union, sometimes they will close it out and have her "reapply" for it on her own.

    Call the bank and find out why they charged it off. If anything they would have told her that since you filed she is now responsible for the debt as a co-signer.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Dec 4, 2007, 01:16 PM
    I think you got some bad advice here. If the bank required a co-signer in the first place, then if they can no longer go after the co-signer why should they leave the account open?

    This sounds like it's a debit card, not an overdraft. Overdrafts are just automatic, there wouldn't be a card attached.

    But I think the bank was within in rights to close it, but not as a charge off.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #4

    Dec 4, 2007, 07:19 PM
    A credit card is not "some form of over draft protection" so it sounds like you may not have know what you were truly signing there.

    If this was a credit card, and she could not have it on her own but needed you to co-sign for the credit card, then once you are no longer a co-signer, they can cancell the card and close the account.

    Since she can still be held liable, it should not have been charged off.
    She needs to check her credit report to see if it is showing up on it, and ask to get it corrected if it is
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