Discharged Debts Are Not Collectible !
Recently, I heard a story which rattled me. A fellow bankruptcy attorney in Sarasota told me that a debt collector had tried to collect a discharged debt from an authorized user. This is a common tactic used by the debt collectors.
An authorized user is not legally liable for a debt. The original credit card holder is. For example, let's say I had a Visa card that I applied for in 2000. In 2005, through aggressive credit card marketing and my lapse of good judgment, I fill out the form and get a card for my brother, since he had just graduated from college. If my brother uses the card, I am responsible, not him. He didn't sign the original contract or application. It is that simple, or to put in lawyer's terms, there is no privity of contract.
So, going back to the Sarasota example. Since the debt had been discharged by the person who was legally obligated to pay the debt, how could the debt collectors come after the authorized users. Well, the collection of any kind of debt is big business, and it is getting worse all the time. Creditors are now taking risks that have never been taken before. Sure, they know that they are going to get caught every once in a while, but it is a cost of doing business.
I warn my clients all the time against debt collectors coming after them for anything contained in their bankruptcy cases. Please keep an eye out.
This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Currently, the firm has offices in Port Charlotte, Fort Myers, Naples and Sarasota. Mr. Dellutri also sits on the Board of American Board of Certification. Mr. Dellutri is also one of the founders of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and Mortgage Law Network. Mr. Dellutri also writes for the firm's personal injury litigation blog and the firm's mortgage modification blog.
