Business Debt/business debt

Advertisement

Expert: - 2/5/2010


Question
Hello,

I owed a business with my ex-husband who in December 2009 defaulted on a business credit card account, with a balance of just over $20,000. The company keeps calling my house looking for my ex-husband and after my credit cards all slashed my credit limit I called and discovered that they claim I co-guaranteed the account in 2002 with a signature, that I am responsible for the debt, regardless of whether I made charges on the account, and has posted the delinquent debt onto my excellent credit rating. In our divorce decree (2004) I am indemnified and held harmless against all business related debt and I also believed I was removed verbally from this card at that time.

I have mailed the credit card company a certified letter explaining my disassociation with the business and a copy of the divorce decree. Do you know what the outcome might be based on the laws or precedence for the state of Illinois? Would hiring a lawyer be wise or should I try to settle with the credit card company? How do I salvage my credit rating?

The fact that my ex has not paid child support for over 1  1/2 years and that he is filing bankruptcy just solidifies that there's no potential financial recovery coming from him if I's obligated to pay to save my credit.

Thank you for any advice you can give!

Answer
Dear Cindy:
Thank you for your question. It is unfortunate that you have encountered issues with old debt, however based on what you have described you should have a strong argument to dispute your creditors claim regarding your liability. It is common for collectors to pressure co-borrowers (often erroneously after a divorce) for payment. If you truly believe you are not responsible for this DO NOT pay as it will renew the statute of limitations remaining on the debt. Furthermore, once and if you get the creditor to "leave you alone" regarding the debt, than you can go to the credit reporting agencies or hire a licensed/certified credit repair agency and have them remove this from your credit report.

Respectfully,
Christine Janklow

Business Debt

All Answers

Answers by Expert:

Ask Experts

Volunteer

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.

©2012 About.com, a part of The New York Times Company. All rights reserved.