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Business Debt/Sole Propietor but did not personal gurantor credit debt.
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Question
I own a business which lost money the last two years as a sole proprietor. In fact I may have to close this fall. My wife who had great credit got a credit card years ago in my business name but she personally guaranteed it. I gave no credit info or signed anything. My wife is now filing bankruptcy in CALIF. The bank list here as sole guarantor on account and has never contacted me as responsible for debt. The account charged off. But a 3rd party Collection agency is trying to put the debt on me even though my wife is now filing for bankruptcy ? How can I have any responsibility ? I did not sign any agreement with bank or anyone ?
The agency probably got my name through a search engine under business etc.. What do I do ?
Kevin:
Thank you for your question. The answer is simple and I am quiet surprised your legal counsel did not inform you that you live in a 'community property' state, so if you are still married, your wifes liability can be transferred to you without notice if she is unable to pay. Also, if as you say, the debt charged off, when did it do so? When did you last pay? The statue of limitations for collections is 4 years in CA from the date of your last payment. It may be that the collection agency is attempting a last ditch effort to get payment before the statute runs out. Either way, you need to discuss these issues with the BK attorney doing your petitions, education and understanding of the consequences is your key. Good luck.
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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