Business Debt/LLC credit card debt

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Expert: - 5/23/2010


Question
My CA LLC failed and I have 2 business credit cards(Chase and Juniper) that I owe about $45k. I just finished my 6 month hardship program. I'd like to know if my personal credit score will be affected if I stopped paying on these debts. I haven't paid my corporate renewal fees for 2 years. I didn't use my social security number to open these accounts, just my business ID number.

Answer
Dear Gali:
Thank you for your question. I regret that your business did not fair well. If you have not already discussed renewal of the hardship program with your creditors, you should if you want to continue to pay the debt down. Many will extend this up to 12 more months. As well, it is difficult to say if you did or did not really personally guarantee the lines. Most banks require this even if you never provided a social. Simply defaulting and hoping they don't come after you personally is risky without a plan to settle or file bankruptcy at some point. The former of your creditors is most aggressive with collections and may possibly file suit to pursue payment on the account. If you are able to offer up a settlement amount that is less than what you owe, you might want to to prohibit further collections actions. Hope this helps.

Respectfully,

Christine Janklow

Business Debt

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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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