Posted on Friday, 3rd September 2010 by Lucy Hales

Q: Here is the problem, I have been rebuilding my credit history for the last 4 years and have 690 score with Equifax. My wife lost her job 11 months ago and has been unemployed since then. By now we have no other choice but filing for Chapter 7 bankruptcy in her name only. She has mortgage in her name only as well as approximately 18,000 in credit card debt which we can’t pay. My wife will most certainly foreclose also as we tried to short sell but got no offers. I am not on the mortgage, so my credit report should be clean from both bankruptcy and foreclosure, then once she gets a new job I can buy a house sometime in a future. Yesterday, my friend who is a loan officer at the local credit union ran my credit report and pointed out that I am listed as an authorized user on her Discover which is 90 days late, and Capital One which is 120 days late, and will be hopefully discharged in the bankruptcy. I want to remove both accounts from my credit report. My friend tells me not to worry since I am not a joint account holder but authorized user only. Still I am very worried. How can have credit bureaus to remove these accounts?

A: You should stop fretting, just like your friend explained, as an authorized user you are not legally liable to satisfy the credit card debt in the event when the principal who is your wife, unable to pay. Had you been a joint account holder for these credit cards, then you would have been very equally responsible for the balances and legally liable for the entire amount on Discover and Capital One. To have credit bureaus remove both accounts from your name, start a dispute and explain that these are not yours. They should comply, but even if they don’t, don’t worry too much. It should not affect your credit score or rating.

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