Am I liable for a business credit card after the business is closed down?

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Am I liable for a business credit card after the business is closed down?

I had a business (S corp) that I closed down last year. I  onpaid 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. 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?

Asked on October 3, 2011 under Bankruptcy Law, New Jersey

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

There is no general answer; to answer this question, you have to reference the credit card agreement(s) for this card. Who is actually on the account --is it the business, and you as an employee are simply an authorized user; or you as a person the one on the account, and it's only a "business" card inasmuch as you may have gotten better terms, rates, credit limit, or rewards because you use it for business purposes. Whoever or whatever is on the account could be held liable. Check also how you signed the agreement for the card--just as you, or in your capacity as owner/president/etc., but not personally? Who are the bills sent to: to accounts payable at your company, or to you personally? Etc. You need to determine who opened up the account and who is contractually liable to pay it.


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