QUESTION
I closed down a business (s-corp) and payed all loans except for a credit card. i can no longer afford to do so. will i be held liable.
Asked on Oct 03rd, 2011 on Business Law - New Jersey
More details to this question:
hello, i had a business that i closed down last year and paid all my loans out, except a credit card which I''ve been paying and still currently owe $12,000. i am having some money problems and can no longer afford to make payments on this account. my question is if i stopped paying this account will it effect my personal credit? i have had this credit account for over 5 years and it has never been on my personal credit report. if i stopped paying would they hold me liable and attempt to ruin my credit?
1 ANSWER
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It depends. If you personally guaranteed the account -- most small-business credit cards are guaranteed by a principal -- the creditor will likely attempt to collect the account from you personally. If that occurs, they will obtain a judgment against you, and the judgment will appear on your credit report.
Answered on Oct 04th, 2011 at 6:59 AM