Can creditors still report on a co-debtors credit during a bankruptcy stay? 6 Answers as of June 10, 2013

My husband filed bankruptcy and I did not. We have a credit line loan that we obtained before we were married. His attorney gave us bad advice and said I would not be responsible after the stay is lifted. We found that I am. Can the loan company report late payments to my credit during the stay? His bankruptcy was just discharged this month and the bank contacted me saying they have been reporting late to my credit all along.

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Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
If the two of you both signed on the credit line, then each of you is independently liable for the entire amount. I am not sure what you mean by "when the stay is lifted", but the negative reporting on your credit flows from your own obligation on the credit line, and has nothing to do with his bankruptcy.
Answer Applies to: California
Replied: 5/19/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes, because in Chapter 7 the stay does not apply to you, and the stay just prevents collection activity.
Answer Applies to: California
Replied: 5/19/2011
Law Office of Larry Webb
Law Office of Larry Webb | Larry Webb
Yes.
Answer Applies to: California
Replied: 6/10/2013
The Law Offices of Alan M. Laskin
The Law Offices of Alan M. Laskin | Jared B. Gaynor
The automatic stay is only operative to the person who filed the bankruptcy - since you did not, they can still do anything legal they could have done to you prior to your husband's filing.
Answer Applies to: California
Replied: 5/19/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
A co-debtor stay means collection efforts are not allowed. There is no prohibition as to a loan company reporting late payment, however.
Answer Applies to: California
Replied: 5/18/2011
    California's Largest Family of Attorneys
    California's Largest Family of Attorneys | Doan Law Firm
    Yes, because you have not filed for bankruptcy and the stay and discharge would not apply to you. Contact the Doan Law Firm, so we can help you file your bankruptcy.
    Answer Applies to: California
    Replied: 5/18/2011
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