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