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Business Debt/Former business director not very frugal
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Question
My husband was voted in as the new director of a small non-profit religious org. The business is in the red, and it appears that the former executive director somehow put husband's name and personal address on a corporate credit card account, and he just received in the mail collector notices of credit card debt.
Who is responsible for paying this? We suspect that the former director used the corp account for personal expenses - he won't disclose the records to the board, but they are not doing anything about it!
The former director? The board of directors individually? The new director? The corporate bank account apparently has a negative balance so the expenses are adding up.
Thank you for your inquiry. I regret that this unfortunate breach of trust and identity has occurred. Based on the information you have provided, it would appear that your husband is not responsible for repaying the debts. However he needs to take some steps to assure he won't be damaged by this in the future:
1. Stop use of the cards.
2. Get the dates when he was added to the account (from creditor).
3. Keep records handy, in case he needs to refer to the documentation later on.
If you have further concerns, please seek the advice of an attorney in your area.
Please take a moment to rate this answer so others may benefit as well.
Respectfully,
Christine Janklow
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Answers by Expert:
Christine Janklow
Expertise
As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.
Experience
My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.
Organizations
Provisors;Turnaround Management Association; Los Angeles area
Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."
Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising
Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.
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