co-signer debt obligation

Generally, a credit card is the same as any other small loan. And the persons who secure the loan are jointly and severally liable as per their credit card agreements. The particulars of these agreements are company specific and governed by state law as well. And while the discharged party may no longer have any legal liability to repay the debt under the law, other parties that have indicated responsibility for the debt are still exposed to liability for repayment.

Here the mother's only sources of income are ERISA protected. So, as a practical matter, while the mother is still legally liable for the credit card debt, it will be hard for the credit card issuer to do little more than to note the obligation on her credit report.

But do remember: if your mother has other unprotected assets, the credit card company could, if they wished, attempt to attach those unprotected assets to satisfy the debt per procedures outlined by state law where the assets are.

That's why getting good counsel is important.

Only the daughter gets a discharge in the bankruptcy, and so the mother is still liable. Although it is rare these days, credit card companies will sometimes settle or forgive a debt. The mother should at least try to call the company and explain her circumstances. In addition, a reputable credit counseling agency may be able to help - but be careful! Good credit conseling agencies are hard to find.