How is coapplicant determined?

Question: I fileda consumer proposal in Dec.07. It was refused outright by the creditor to whom I owed the largest amount, with no renegotiations accepted. I was told by the trustee I had no option but to declare bankruptcy, based on our family monthly budget. I filed bankruptcy Jan. 08. Feb. 08 my spouse recieved a letter declaring him to be co-applicant on that same account. We know that he was not a co-applicant on the initial card application, but did receive an additional card on that account at a later date. At no time during the consumer proposal did he recieve a call from the creditor asking for payment. It was not until after the bankruptcy was filed that he was contacted. During the consumer proposal process we were asked if anyone had cosigned/co-applied for my debt. We did state that he was a secondary card holder but understood him to be an authorized user. He never signed any application. My spouse is currently enduring stressful hassel from the creditor. He has requested proof of his signature as co-applicant. We know we did not co-apply for anything. The creditor has so far stated that they do not have a signature, but the debt is his because he was issued a card. He is still fighting but it feels like David and Goliath. Is there anything we can do?

Answer: Yes, you can "call their bluff"; you can tell them that your spouse never signed for the card, and therefore is not liable. Their next step may be to take him to court. It will then be up to the credit card company to prove that your spouse is liable for the card. If they can't prove it to a judge, they won't be able to pursue him further.

Of course if they do have a signature on file and can prove it, then he may be subject to a wage garnishment.

A lawyer can advise you further on the possible ramifications of going to court.

Labels: credit card