Facing personal bankruptcy is hard enough without involving your children and their credit. Can you imagine being able to ensure that your children's credit will be pristine even if yours isn't? What happens when you put your son or your daughter on your credit card so that they can begin to build credit? Does it count against them if you stop paying your bill on time?
One father is facing the fact that his credit card payments may reflect on his daughter. He added her to his card so that she can begin building credit at the young age of 16. He says that he pays all of his credit card bills as soon as they come in but he has a bankruptcy on his credit report and, even though it is seven years ago, it still comes back to haunt him sometimes.
An authority on the matter states that dad can relax, because the only part of the credit history that the daughter will be included in is the specific credit card she is signed up with. Only the history of the cards that she is authorized to charge on will affect her credit. So, as long as he limits her ability to a few cards and pays them regularly and on time, his bankruptcy will not touch her credit.
If, by chance the father's credit history does begin to affect her, she can file a complaint with the credit bureaus involved. No influence from the bankruptcy should have any lasting effect on her credit at all.
Knowing what the law says about personal bankruptcy is important if you are just starting out or if you have faced a bankruptcy. If you think that you may have to file for personal bankruptcy in the future, having someone in your corner to help you in the legal sense can be reassuring.
Source: Credit.com, "Can My Bankruptcy Show Up on My Kid’s Credit Report?," Bev O'Shea, accessed Dec. 02, 2015
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