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Un-Incorporated
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Subject: Corporation Default = Personal Liability?
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Sat Jul 12, 2008 2:57 am
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Hello. I had an S-Corp that I formed in 2005. At that time I obtained a business credit card from B of A. Long story short, things turned sour and my corporation had to walk from the business credit card.
I don't see any impact on my personal credit (it is at ~720) but the collections people are telling me that I am PERSONALLY liable for the debt and I recently found the infamous "FIA CSNA" inquiry on my personal credit. Can they do this? |
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Un-Incorporated
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Sat Jul 12, 2008 2:58 am
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| To be more specific, can they come after me personally. |
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CMBV22
Joined: 08 May 2008
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Posts: 382
4431 Magic Points
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Sun Jul 13, 2008 1:37 am
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I do not know to much about this area but I guess it would depend on your contract witht the CC compay and if you protected yourself by buying a LLC title for your company
_________________
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goodnatured
Joined: 03 Nov 2007
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Sun Jul 13, 2008 2:31 am
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How did you have the company set up? Was the business it's own entity, seperate from you?
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Goodnatured,
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anthony
Joined: 31 Jul 2006
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Mon Jul 14, 2008 8:44 am
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When you formed your corporation and obtained a business credit card from Bank of America, you must have given your personal details and put in your signatures on it as the owner of the company. So your personal details are with the credit card company and it means that you are liable for the debt. Since now your business credit card has already been closed, the card company can report it to the CRAs who in turn can list it on your personal credit report.
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Anthony Marx
A positive attitude is not achieved by turning a blind eye to the negative, but rather by responding to every situation in the most positive way possible. |
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Justin
Joined: 17 Jul 2006
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Mon Jul 14, 2008 9:14 am
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I too think that Anthony is correct. You can send a debt validation letter to FIA CSNA to find out whether or not they are authorized to collect the debt. If they validate your debt, you can try to come to a pay for deletion agreement with the collection agency. However, if they cannot validate your debt within 30 days of receipt of your letter, you may send a dispute letter to the credit bureau, telling them that you do not agree with the listing.
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All the Best 
Justin |
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Un-Incorporated
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Tue Jul 15, 2008 12:26 am
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It was an s-corp. I was an officer of the company and set up the corporation as its own separate legal entity. The corporation obtained credit on its on merits. To illustrate, the rate on the credit card was 25.99%, but on my personal credit cards varied between 7.99-9.99%.
I don't see how they can go after me. They are stating that I am the guarantor of the debt and I see that NOWHERE in my paperwork. Aside from the FIA CSNA inquiry, my personal credit has been unaffected. |
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goodnatured
Joined: 03 Nov 2007
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Tue Jul 15, 2008 1:49 am
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After reading your most recent post, I don't think that they can go after your personally, is there anything left at the company that they can sheriff sale and take for the money that the business owes them?
_________________
Goodnatured,
http://cashinpocket.synthasite.com/
for all the ways I make $$ online |
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Un-Incorporated
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Tue Jul 15, 2008 4:02 am
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The business is done. I sold my office furniture and supplies in 2007. This site has a lot of useful tools I noticed for getting ahold of creditors and calling them out. My guess would be that these are scare tactics.
Is it legal for them to lie to collect a debt? They are threatening to send me to their lawyer to have them put a lien on my house. I really don't see how they can do that since the debt was under the s-corp and not under my social. I WAS offered some credit cards for my corporation where I WAS the guarantor and the rates were much more favorable than the one I ended up getting. Thoughts? |
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goodnatured
Joined: 03 Nov 2007
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Wed Jul 16, 2008 2:30 pm
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Yes it is illegal for them to threaten something that they do not intend or have the legal right to do, you should visit the Fair Debt collection website, all the laws are there.
_________________
Goodnatured,
http://cashinpocket.synthasite.com/
for all the ways I make $$ online |
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Morningstar
Joined: 17 Apr 2007
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Thu Jul 17, 2008 12:22 pm
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FDCPA does not apply to business debts.
Do you have a copy of the orginal credit agreement?
_________________
I don't dream since I quit sleeping |
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Un-Incorporated
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Tue Jul 22, 2008 3:29 am
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Morningstar-
Perhaps, but the debt belonged to my CORPORATION. They are going after me PERSONALLY. I cannot seem to locate the credit app from two years ago so I guess I am going to have to go with a debt validation letter and see what their next move is. |
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Un-Incorporated
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Tue Jul 29, 2008 8:14 pm
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UPDATE:
I've asked for PROOF that this I am personally liable for this debt and they are REFUSING to provide this-- they're only sending a settlement offer. I asked them multiple times and they said "We are not sending you a copy of your application".
What's my next step? How do I dispute the debt against me personally? Help! |
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Morningstar
Joined: 17 Apr 2007
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Wed Jul 30, 2008 3:47 am
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Which entity did you contact when requesting a copy of the application--the original creditor, or the CA?
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I don't dream since I quit sleeping |
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CMBV22
Joined: 08 May 2008
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Wed Jul 30, 2008 8:23 pm
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Un-Incorporated
At this point you need to contact your local AG or someone at the FTC and get the officail story on this matter. Since your house is on the line I might also look for a lawyer that offers free consultations and ask his/her advice
_________________
****************************
Free sample letters,
info on paying off payday loans,
and quick credit repair tips.
Pesonalized credit repair advice in the forum:
www.homecreditrepair.net
http://homecreditrepair.hqforums.net/ |
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