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 Dear
Bankruptcy Adviser,
I have filed bankruptcy, Chapter 7. The issuer
of one of my credit cards that I had my wife's
name on has assigned that card to her. And now
she has that debt. However, it was never a joint
card. And when I asked for them to send me the
application, they said it was done electronically
over the phone. I do not think I put her down
as a joint applicant for this card, but how can
I prove this? They seem to be (pardon the pun)
holding all the cards.
Let's pretend for a moment that
I did give her name as a co-applicant (which I
did not). Can I do that? Don't they need her to
do that? I do not even know her Social Security
number. Wouldn't they need that?
-- Matt
 Dear
Matt,
You are involved in a very difficult game of "he said, the banks said." In this game, the only way I know of proving your case is through litigation. After all, any battle against a bank is uphill -- and as you said, they hold most of the cards.
Please note that if you live in a community property state, it is possible that the credit card company could claim that you were married at the time the debt was incurred. Under community property law, she may be liable for the debt regardless of whether she was or was not a joint cardholder. However, it is also possible that under the bankruptcy laws, community property may be exempt and the creditor would be able to come after your wife's separate property only. This is a complex issue that would require a deeper understanding of the facts.
As I understand your situation, you believe that you gave your wife a credit card for her use. You applied for the card, signed the form and specified that your wife is to be an "authorized user." Now that you're filing Chapter 7 bankruptcy, you expect that debt to be erased. However, the bank is insisting that your wife is liable for the debt on this card -- they are claiming that she was also an applicant.
At this point, you need to send the bank a debt verification letter. This is a letter in which you ask for proof that she was put on the account as a joint applicant and not an authorized user. Unfortunately, to determine whether she was an authorized user will only be possible (a) if the creditor is willing to provide the documentation or audio records requested, (b) if you have good records of the transaction, or (c) depending on the state you live in, your options may be through litigation only.
In my opinion, the only thing that can get your wife out of this mess is either filing a lawsuit against the creditor or waiting for them to sue her. Once she is sued, you will need to answer the lawsuit. Your answer must conform to the court's rules and regulations or your response will be rejected. Thus, at the point where you're suing or being sued, you should consider hiring an attorney. Low-income debtors may be able to receive free legal assistance from a local Legal Aid, which offers pro bono services.
Matt, the longer you wait, the fewer options you have available. It's possible that a competent attorney will take this case free of charge with the hopes of recovering damages from the collection agency or credit card company. If not, I think the expense is worth it. Get this matter cleared up as part of your bankruptcy proceedings and give yourself as fresh a start as possible.
Finally, it is possible to end all discussion of the issue and have your wife file bankruptcy to eliminate the debt.
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