Hi,
I own an s corporation. It's a service business and barely making money. I filed personal bk and am now into the 60 days waiting for discharge.
The business has a Capital One CC with a $12,000 balance. The card was not included in the BK because the card was in the business name and I was not a guarantor.
I was card holder and my dad who keeps the books was also a card holder. My dad opened the account originally in 2000 with only the EIN number of the business. In 2003 we had to report the cards lost and they issued new ones. They claim at that time that my dad became the guarantor.
On a side note the business was current, never late and never missed a payment. They raised the rate to 23% because they could. Before my bk my credit score was 720 my dad's is in the upper 700s. The business has excellent credit. Capitol One would not even talk about putting the rate back to what we agreed on. They would not even consider an installment loan at a reasonable rate.
This was all done over the phone. The card is 2 months late and it just started reporting on my dad's personal credit report. Capitol One has started calling the business number looking for my dad. I told them he was just a card holder and to send any correspondence to the business address. So far they just send statements with the past due amount.
We did send a letter asking for a copy of a contract that showed my dad as guarantor and all they sent was a letter stating it was done over the phone and there is no signed contract.
A lawyer advised not to pay as the company is pretty much judgment proof but this was before the Capitol One started claiming my dad was guarantor.
My dad has already pulled all his reports and is attempting to dispute it. I feel horrible that my business is doing this to him and I want to take him out of the picture. He was just the bookkeeper nothing more.
The questions are:
How do we proceed. This is the s corporation debt not my dad's.
If the debt is somehow proven to be my dad's can the s corporation still settle and the tax liability go to the company.
If they can't prove my dad is a guarantor how does he remove it from his credit report.
If there is anything else you guys can suggest please do.
I'm sure we will eventually be seeing a lawyer but money is tight right now so I'm doing as much homework as I can.
Thanks fo any help or suggestions.
I own an s corporation. It's a service business and barely making money. I filed personal bk and am now into the 60 days waiting for discharge.
The business has a Capital One CC with a $12,000 balance. The card was not included in the BK because the card was in the business name and I was not a guarantor.
I was card holder and my dad who keeps the books was also a card holder. My dad opened the account originally in 2000 with only the EIN number of the business. In 2003 we had to report the cards lost and they issued new ones. They claim at that time that my dad became the guarantor.
On a side note the business was current, never late and never missed a payment. They raised the rate to 23% because they could. Before my bk my credit score was 720 my dad's is in the upper 700s. The business has excellent credit. Capitol One would not even talk about putting the rate back to what we agreed on. They would not even consider an installment loan at a reasonable rate.
This was all done over the phone. The card is 2 months late and it just started reporting on my dad's personal credit report. Capitol One has started calling the business number looking for my dad. I told them he was just a card holder and to send any correspondence to the business address. So far they just send statements with the past due amount.
We did send a letter asking for a copy of a contract that showed my dad as guarantor and all they sent was a letter stating it was done over the phone and there is no signed contract.
A lawyer advised not to pay as the company is pretty much judgment proof but this was before the Capitol One started claiming my dad was guarantor.
My dad has already pulled all his reports and is attempting to dispute it. I feel horrible that my business is doing this to him and I want to take him out of the picture. He was just the bookkeeper nothing more.
The questions are:
How do we proceed. This is the s corporation debt not my dad's.
If the debt is somehow proven to be my dad's can the s corporation still settle and the tax liability go to the company.
If they can't prove my dad is a guarantor how does he remove it from his credit report.
If there is anything else you guys can suggest please do.
I'm sure we will eventually be seeing a lawyer but money is tight right now so I'm doing as much homework as I can.
Thanks fo any help or suggestions.