ghs215

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

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.

DoingHomework

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.