Expert: Christine Janklow - 5/15/2009

Question
QUESTION: I had my corp enter into bankruptcy and the 3 corp debts were discharged in
court.

I am now being sued by the credit card personally as they claim I am a co-
signer. They do not have my signature on any agreement. I had been very
careful not to co-sign for any corp debt. I have asked repeatedly for proof
and the only answer I get is "we know you did because our computer says
so."

Will their claim hold up in court, without having proof of my signature?

ANSWER: Dear Michael:
Thank you for your inquiry. I regret that you find yourself still dealing with remnants from your corporate bankruptcy. If in fact you say that you are being sued, that being you have received a summons from a law firm representing the bank in question, than they might be attempting to obtain a default judgment which will entitle them to collect against your personal assets. If you are being threatened with a suit, meaning you have not received any such notification then the card company or agency might just be trying to coerce a payment from you for several reasons including the statute of limitations running out, they have some evidence of your personal guarantee and intend to sue you, or they want to leverage thier position to make you pay them anything you can, which will reinstitute the statute on the debt for another several years. A collection agency can't sue you, but a law firm particularly in your state of residence is something to take notice of if they have been assigned the account. You should discuss the matter at once with your attorney handling your lawsuit to do your bidding on your behalf. If they find you to be personally liable, you might attempt to settle this out for less than owed and move on. For more information on statutes or fair debt collection please visit www.ftc.gov or www.fair-debt-collections.com

Hope this helps.

Respectfully,

Christine Janklow

---------- FOLLOW-UP ----------

QUESTION: Thank you for your reply. I have been served and a trial date has been set.

My question is, does the CC company need my physical signature that I am a guarantor on the debt?

My attorney is looking up case law, but I saw your site and thought you may be familiar with this aspect of debt.

Thank you,

MG

Answer
Michael:
The CC company probably has some form of verification, and no they don't need a physical signature, and may have a verbal recording if you applied over the phone. It is really likely unless you have a well established credit history for your business solely (this can take years) that you did PG. Have you tried to settle this account with them. They might be willing to if you have some funds to do so - ask your attorney. Good luck.

C Janklow