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Expert: - 4/13/2008


Question
I have an LLC that i disolved last year.  I have a credit card in the LLC's name that was charged off.  I am now getting calls from a third party collector.  This bill is not on my credit report.  Am I personally liable for the debt?  If so, how far can they go, or will they go to collect a $987.00 debt?

Answer
Alan:
Thank you for your question. In all likelihood, you have personally guaranteed this debt. The party who was assigned by your creditor to collect this probably "bought" the debt for pennies on the dollar. They might be very aggressive or not. Here is what they can do; report the debt on your credit report, call you from 8am to 9pm daily. If they are not a law firm in your state it is not possible for them to sue you (no matter what they threaten), if it assigned to a law firm in your state then they might initiate legal pursuit. That said, the debt amount is so small the agency probably won't put a lot of resources ($) into collecting it, and it eventually may be deemed (by the collector) as uncollectible. If you are uncertain about their intentions or simply want to put this to rest and have a little bit of money to offer up to close it out for good (a small % of the balance) try speaking with a manager within the agency to get them to accept a discounted amount as settlement. Make sure you claim that your business is closed and you have no further revenue from it. Don't speak too much about your financial recovery thereafter. If they accept less for what is owed than make sure to request a settlement letter to verify that the agency has released you from further liability. I hope this proves helpful, please take a moment to rate my answer so others may benefit as well.

Respectfully,

Christine Janklow

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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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