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Question
Hello Christine:
My husband owns an LLC with a partner.
The business has closed its doors, due to economy and my husbands partner abdondoning the business.
Here is the kicker. He left my husband with about $60K in Business Credit Card Debt.
The business cards show the company name on them, they do not show up on my husband's credit card report. My husband and I have a strong credit profile, we always pay our bills and we have no debt but our mortgage.
A few questions:
1. Once they default will they attack my husbands credit report and/or go after him?
2. Can they go after my credit report? Can they go after me? I am not a authorized user, I have never touched the cards.
I have received different answers from different folks. Hoping you can give clear advice!
Thank you so much.
Dear Laura:
Thank you for your inquiry. I do regret that your husband is dealing with a difficult financial situation.
To answer your questions see below:
1. Once they default will they attack my husbands credit report and/or go after him? Depending upon if he personally guaranteed the debt and/or had the partner as a co-signer they can look to either of them to assume liability for repayment.
2. Can they go after my credit report? Not unless you were an guarantor, co-signer or authorized user. Can they go after me? Only if you are one of the former. I am not a authorized user, I have never touched the cards - true, but not if you live in a community property state such as California.
Lastly, if he does discover he is liable for the debt, you might consider entering a commercial debt settlement program, such as the one my company provides.
I hope this helps.
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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