How risky would it be?

[nodollarsnomo]

I have 2 Chase cc's that I have continued paying on, for fear that they would tap into my husband's business checking acct.
This acct. is in our business name, but I am listed as the secretary of the business and can sign on the acct.
These 2 cc's are in my name only and had been linked to our personal checking, but I closed the acct. a few months ago.
Do you think they would go after the business acct. if I stop paying?

[flyinbroke]

Yep, it is cross-collateralization...if you owe money to Chase and you have money in Chase, then Chase can take money from the account to pay the money owed. I don't think it matters whether it is personal or business, though those wiser can probably say.

[catleg]

Depends on who owns the account. Just because you're a signatory on the account shouldn't make the company liable for your personal debts. Not sure what the law exactly provides, probably depends if the business is incorporated or not. I'd be interested in hearing what a lawyer has to say, probably depends on your state of course.

I do know of a case in NJ collections law where a judgment creditor tried to get a bank garnishment against a corporation's account owned by the judgment debtor and was denied, but they were very sloppy about it, probably because piercing the corporate veil is not so easy.

[nodollarsnomo]

The business is incorporated.

[catleg]

Then they can't touch it. You are only an officer of the corporation, they can't take corporate funds as if they were your own. The corporation is a separate legal entity, literally, a type of person under the law.