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GG1981cc

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Filed Chapter 7, what happens to Cosigner?
I field for Chapter 7 Bankruptcy and Discharge date was May 2012. One of the credit cards included on the Chapter 7 was a credit card where I was the Primary and sister was also on the account. She had a card with her name. I guess that makes her a cosigner? She didn't file for Bankruptcy, just me. Five years have passed since the Chapter 7 Bankruptcy. She has a Fico score of 780. I have Fico and Vantage scores in the 720-739 range. They haven't contacted her nor demanded any form of payment. Does this mean they won't collect from her? Could they demand payment at anytime? Is there a statue of limitations for when they could collect payment? Thanks for your time.

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If it has been that long and they haven't contacted her, I would say that she is off the hook. The "statute of limitations" to be sued for debt varies among the states, you can look on the website BankRate and they have a list of the "sol" for different states. All in all, I think there is nothing to worry about here. I do want to add, even if she had a card in her name, she could have just been an "authorized user" and not a joint account holder. Authorized users cannot be held responsible for accounts with the exception of illegal things (ex. employees using company credit cards for unauthorized purchases).

Reply by
GG1981cc

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Thanks so much. is this the link to the info you refer me to?

http://www.bankrate.com/finance/credit-cards/state-statutes-of-limitations-for-old-debts-1.aspx

it says California is 4 years. if that's the case we're good? Does that mean they could still collect but not sue or does that mean they also can't collect? 

Reply by
GG1981cc

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Thanks so much. I live in California and the SOL seems to be 4 years. That means they can't sue, but they can tarnish her credit by reporting old debt? She knows her Fico score because she has the Discover card thing and when she bought her Home three years ago her Fico score was 810. I remeber her telling me couple weeks back her score was now 780. If I have her join Credit Karma, will the old account show in her credit? Something I should look for?

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Whether the account will be on her reports or not, I do not know. If she wants to join Credit Karma or not, that is her choice, but remember that Vantage scores are given here, not FICO. I would not worry about this, if her FICO scores are in the range you listed, she is doing just fine in the credit world.

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If your sister bought a home three years ago and her FICO was over 800 then, do not worry about the old debt she cosigned for.  Please take the time to read the articles here so you can understand how credit works.  This information will help you for the rest of your life.

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