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FAQs
Basic Joint Account Questions
1. Can the other signer on a joint account be a friend, relative
or business partner?
2. Am I legally responsible for the balance on a joint account,
even if I didn't make the charge(s)?
3. Do both signers on a joint account have the authority
to close it?
4. If my co-signer makes me a promise to pay her/his half
of the bills, will I still be held responsible for the charges they made?
Bill Collectors
5. I have a joint account and bill collectors keep calling
me. Can I just tell them to call the one that ran up the bill, to get them
to leave me alone?
6. Is it true that even though I am legally responsible for
a joint account, I am really only responsible for half of the amount owed?
7. Can you stop responsibility for payments on a joint
account by notifying the creditor(s) of a court decree?
Divorce
8. My divorce decree declared that my spouse has to pay
the mortgage/credit cards. Is it true that I won't be liable and my credit
won't be damaged?
9. If the court assigns single responsibility for payment
of the joint account, does the creditor have to agree?
10. Even if I have a joint account, can I limit my liability/responsibility
for the debt on the account by notifying the proper authorities?
11. I've never had a joint account with my spouse, and we
are now getting a divorce. Will I be responsible for what s/he has
charged on her/his cards?
12. Can you remove an ex-spouse (or other co-signer) from
your joint account without their permission?
13. Should my lawyer be taking care of my joint account
responsibilities as part of the service?
Credit Identity
14. As an adult, am I legally entitled/required to have
my own credit identity?
15. My credit identity has always been with someone else;
is it too late to get one of my own?
16. Do I have to take action to protect my own credit?
17. Are there procedures I need to follow to protect myself
from credit damage?
18. Am I able to open an individual financial account if
I already have a joint account?
19. My spouse/partner/relative has my social security number – am
I responsible for a joint account opened without my knowledge?
20. My parent opened an account with my social security
number when I was under 18, so I am not liable for the charges and
it won't show up on my credit report.
1. Can the other signer on a joint account be
a friend, relative or business partner? Yes. You can enter into a joint
account with almost anyone, provided you trust them and are sure that they
will accept they're share of the responsibility when it comes time to pay
any debt. Otherwise, if they don't, you may be stuck paying the full bill.
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2. Am I legally responsible for the balance on
a joint account, even if I didn't make the charge(s)? Yes. There are steps
you can take to minimize the bill collector harassment (click
here), but when it comes down to it, if you signed the contract promising
to pay the balance, you are responsible for it. Read through any documentation
or contracts from the corporation or bank you signed the contract with
to see exactly what your responsibility is. If you have questions about
it, all credit companies have help lines to assist you.
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3. Do both signers on a joint account have the
authority to close it? Yes – if the account is a true joint account.
However, a signer who is only an authorized user does not have the ability
to close or make any changes to the account. It's very important to know
what type of account you have in order for you to understand what you (or
the other person) can and cannot do.
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4. If my co-signer makes me a promise to pay her/his
half of the bills, will I still be held responsible for the charges they
made? Yes. You signed a contract with the creditor promising to pay the
debts. It doesn't make any difference to the creditor if you have made
a private agreement with the co-signer. The fact is that you will still
be held responsible for the money owed on the joint account.
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5. I have a joint account and bill collectors
keep calling me. Can I just tell them to call the one that ran up the bill,
to get them to leave me alone? You can try it, but it's not going to work
because you are still responsible for paying the balance. Unfair perhaps,
but that is the reality nonetheless. So protect yourself before this happens!
Be careful who you enter into a joint account with and learn more about
your rights and what you can do about bill collector harassment - click
here.
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6. Is it true that even though I am legally responsible
for a joint account, I am really only responsible for half of the amount
owed? No, that is not true. When you signed the contract you agreed to
be responsible for the ALL of the credit; you didn't sign an agreement
to pay "half" of the bill or take "half" of the responsibility. The creditors
don't care about which of the co-signers pays the balance. Their only concern
is getting the debt (and, more importantly, the accrued interest) paid,
therefore you are responsible for ALL of the debt.
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7. Can you stop responsibility for payments
on a joint account by notifying the creditor(s) of a court decree? Yes.
There are specific procedures to follow, forms you must fill out, and appropriate
language to use in letters of notification. For more information click
here.
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8. My divorce decree declared that my spouse
has to pay the mortgage/credit cards. Is it true that I won't be liable
and my credit won't be damaged? No! The court cannot override your responsibility
to the creditor(s). If the court determines that the bills should be paid
by your ex-spouse, and your ex-spouse does not follow through, you are
still liable for those bills and it WILL show up on your credit report.
This website was designed to help with just this problem. For more information click
here.
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9. If the court assigns single responsibility
for payment of the joint account, does the creditor have to agree?
No, because when the account was opened, you signed a contract agreeing
to pay the balance of the debt.
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10. Even if I have a joint account, can I limit
my liability/responsibility for the debt on the account by notifying the
proper authorities? Yes, but you must use the correct forms and specifically
worded letters of notification. To get all of the forms and letters properly
prepared and worded you can hire a paralegal (which is costly) or you can
do it yourself for a fraction of the price. We offer downloadable forms
and letters here.
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11. I've never had a joint account with my spouse,
and we are now getting a divorce. Will I be responsible for what s/he has
charged on her/his cards? If you have not held a joint account together,
the amount you are responsible for will be determined during the divorce
settlement process, depending on the assets and liabilities of each person.
So, you could possibly be held responsible for your ex-spouse's charges,
but it wouldn't show up on your credit report.
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12. Can you remove an ex-spouse (or other co-signer)
from your joint account without their permission? Yes you can. There are
proper procedures to follow though to make sure it is legal. For more information
contact us here.
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13. Should my lawyer be taking care of my joint
account responsibilities as part of the service? No, a lawyer is
not responsible for removing your joint account responsibility, that is
purely between you and the creditor(s).
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14. As an adult, am I legally entitled/required
to have my own credit identity? No. There is no law that requires anyone
to have a credit identity. However, it makes life easier if you do.
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15. My credit identity has always been with
someone else; is it too late to get one of my own? It is never too late
to establish your own credit identity. This is your right as per the Equal
Credit Opportunity Act.
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16. Do I have to take action to protect my own
credit? Yes. As with everything else in life, no one is going to do it
for you without a fee! It is your responsibility to learn about what you
can do to protect your credit. This website was established to help you
with that.
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17. Are there procedures I need to follow to
protect myself from credit damage? Yes. We have 5 downloadable forms to
help you protect yourself.
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18. Am I able to open an individual financial
account if I already have a joint account? Yes – having a joint account
does not prevent you from having an individual financial account.
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19. My spouse/partner/relative has my social
security number – am I responsible for a joint account opened without
my knowledge? Yes, you are responsible for the debt on that account. The
best way to deal with this is to prevent it from happening in the first
place, but if it does happen, this website offers information, forms and
personal services to help you deal with the situation.
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20. My parent opened an account with my social
security number when I was under 18. Is it true that I am not liable for
the charges and it won't show up on my credit report? Sadly, this is not
true. Although minors are not legally bound to contracts, it will still
show up on their credit report, and remain there for years after he/she
becomes an adult. If you find yourself in this situation we may be able
to help you. You can contact us here.
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