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 Editor's
note: This is the debut of a new reader service column from Bankrate
-- the Bankruptcy Adviser column by Justin
Harelik, a Los Angeles-based bankruptcy attorney who formerly
made a living collecting debts. He will answer questions about bankruptcies
and collections every week. You can sign up for a Bankrate
News Alert that will send you an e-mail alert when he writes
a new column.
 I
have filed for Chapter 7 bankruptcy, for mostly credit card debt.
The cards were in my name only. Will my spouse's credit report show
bankruptcy as well or will they try to get him to pay my debt?
-- Diane
 Diane,
This is a common question. If the credit cards were in your name
only, but your husband was authorized to use the cards, then your
husband is known as an "authorized
user." This means he's been given authority by a primary cardholder
(you) to make charges to your account without any liability. If
the cards are in both your names, then he is a co-signer and you
share the responsibility. Thus, if you signed the credit applications
together, your bankruptcy will show up on the section of his report
that is public record and he is legally responsible for your debt.
However, if your husband is an authorized user, and
if the debt was incurred in a community property state, then from
a legal perspective it is your shared obligation. If you live in
Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico,
Puerto Rico, Texas, Washington or Wisconsin, creditors could pursue
both of you.
Often, however, they don't. Most of the time when
there is only one applicant, the creditor does not even know about
the spouse or doesn't want to take the trouble to collect from someone
who is not directly associated with the account.
Therefore, if your husband is an authorized user and
you live in a non-community-property state, he will not have bankruptcy
as an entry on his credit report. The card he holds from your account
may have a notation (not an "entry," which will affect
his score) that reads, "this account was reported in a bankruptcy
case." If there is such a notation, he write
a letter to the credit bureau requesting that they remove this
notation from his credit report. Remember that even if this statement
does appear on his credit report, it will not negatively affect
his credit score.
Justin Harelik is a practicing bankruptcy lawyer
in the Los Angeles office of Price Law Group. To ask a question
of the Bankruptcy Adviser go to the "Ask
the Experts" page, and select "bankruptcy" as
the topic.
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