AboutChristine 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.
Organizations Turnaround Management Association; Los Angeles area
Publications 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 and service providers.
My husand and I were owners of a small S-Corp that went out of business. All assets were taken by the landlord as there was a personal guarantee on the lease. The corporation was issued two credit cards. One Capital one with a limit of $3500. One American Express with a limit of $15000. When the business closed the Capital One debt was approximately at $3500 and the American Express at $8500. With interest and late fees Amex is now at over $10000.
The business closed in August and that's when the last payments were made to the accounts. I just got notification that my personal credit has the Amex listed for collection. I did not recall signing a personal guarantee on this card. I just went and looked at the cardholder agreement and this is all it says:
By submitting this application, I as the Authorizing Officer designated herein and the Company (a) request that you open an account in the name of the Company, (b) request that Card(s) be issued on that account as indicated on this application and other applications, (c) understand that you will renew and replace the Card(s) until I cancel, (d) agree to be liable for all charges to the Card Account made by all Cards issued on the account now or in the future, (e) agree to be bound by the agreement governing the account, and, (f) REPRESENT THAT THE CARDS WILL BE USED FOR COMMERCIAL OR BUSINESS PURPOSES.
Does this constitute a personal guarantee? If not, how do I fight this collection and get this off my credit?
Thank you.
Answer Brenda:
Thank you for your question. I have known companies such as Amex and Capital One to claim debt to be personal, even after the dissolution of a business. Based on the information you provided, that was derived from the instrument (contract) that you signed it would appear that the paragraph does not indicate a personal guarantee. If they are not still attempting collections on these accounts,disputes of this matter are best dealt with by utilizing a licensed credit repair agency. They can often have derogatory or inaccurate reporting removed from your personal credit. If it is necessary, you may want to consider writing a letter and providing a copy of what you signed to Amex and also any documentation that pertains to the official closing of your business so they have it on record. Make sure to send it Certified/Return receipt.
If they do not accept proof of non-liablility, or prove your information to be incorrect and continue with collections, you may need to engage a professional business debt settlement company or hire legal counsel to represent you in this matter.
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