Amex Open and Dissolution of Business

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3 posts
ghs215
 
Posts: 1
Joined: Thu Nov 19, 2009 10:37 pm
Location: usa

Amex Open and Dissolution of Business

Postby ghs215 » Thu Nov 19, 2009 10:39 pm

Hello,
I am new here. I am trying to figure out my options. I have a Costco Amex Open Business credit card for my LLC company. My wife and I are the LLC members and no other employees. My company is failing and we are going to file for dissolution. The only debt we have is this $5K Amex card. What are my options? Am I personally liable for the debt? We cannot possibly pay off the entire amount. Do I need to notify Amex? If I am personally liable, to what extent? Should I negotiate payoff terms?

Any advice would be helpful.

Thanks!


realest145
 
Posts: 2
Joined: Mon Nov 23, 2009 12:27 am
Location: Connecticut

Postby realest145 » Mon Nov 23, 2009 12:37 am

Yes, as the only two "members" you are liable for the charges. If I was in your situation I would notify AMEX asap and work out a payment schedule of some sort with them. If you want to avoid serious credit problems you need to start working with your credit card companies as soon as possible. I know this from my own experience and the 3 year battle that I just finished with my own credit report.
CURRENT CARDS:

Amex Plat. (personal and buisness)
Amex Blue (personal and business)
Visa Signature

DoingHomework
Centurion Member
Centurion Member
 
Posts: 707
Joined: Tue Sep 22, 2009 1:15 pm
Location: Arizona

Postby DoingHomework » Mon Nov 23, 2009 10:36 am

ghs215 wrote:Hello,
I am new here. I am trying to figure out my options. I have a Costco Amex Open Business credit card for my LLC company. My wife and I are the LLC members and no other employees. My company is failing and we are going to file for dissolution. The only debt we have is this $5K Amex card. What are my options? Am I personally liable for the debt? We cannot possibly pay off the entire amount. Do I need to notify Amex? If I am personally liable, to what extent? Should I negotiate payoff terms?

Any advice would be helpful.

Thanks!


It depends how you applied for the card. If you gave a personal guarantee then you are personally liable. Unless you had been in business for several years when you applied it is highly unlikely they would have extended credit to a new LLC so you probably gave a personal guarantee by signing the documents. If so then they will certainly expect you to repay it regardless of what happens with the business.

You might want to talk with a lawyer. Oddly enough your best bet might be not to dissolve the business and just let it wither.



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