Business Debt/Credit Card debt

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Expert: - 5/16/2010


Question
I have a business credit card in my name and on the card it has the business name.(The corportation is a C corp) My partner and I are trying to work to pay off the debt but it may go to collections before we can do that. Can the credit card company go after my personal assets? All my personal asset or in my and my wife's names can they go after them? Is there a way I can protect them?
Thank you in advance for help.
Carl H

Answer
Dear Carl:
Thank you for your inquiry. What you have in relation to your business card is a personal guarantee. If you are falling behind on payments or actually go into a default status the account will be assigned to the banks collection department. After that if no resolution is worked out, than it may go to a collection agency or a law firm. The first thing to do is if you have a checking or savings with the issuing bank, and you remain in default, you should consider doing business with another bank until resolved. They have the right to offset, (remove monies owed from your accounts) to get accounts current. Secondly, if you don't work out an arrangement or settlement with the bank, they may pursue legal action. If a judgment occurs, they can take measures to levy, garnish or lien monies/equity in your personal name and if in a community property state your wife's. The best way to avoid this is be VERY proactive. If you cannot afford the current payment, ask to be put into a hardship program, which should lower interest and payment amount for a set period of time. If you have lump sums to settle you may be able to get a deep discount by negotiating with the collection dept. Or you can engage the services of a commercial debt settlement firm to handle matters and negotiate a fair resolution. I hope this answer was helpful, if so, please take a moment to provide a positive rating 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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