Help! Business and Personal

[endro]

I took out two credit cards in the form of a business account from Cap 1 once. One I just made the name up and never got a business license or anything else for it. The other I did take out a bank account with the name but no license of any kind and got a tax ID under that name but the IRS didn't seem to care what business name it was under or if it changed any number of times. And I did file a return with that tax ID and name but I don't have much outstanding on that card. The other one, yes, I have a large bill...

They sent me a letter saying that I am responsible "if the business is legally structured as a sole proprietorship" (the account with the large bill).

Well -- no business license in that name, no bank account in that name, no taxes filed under that name, nothing more than imagination and dreams. Am I eligible under personal Chapter 7?

If not can I file separately for the business?

The other is small enough to pay off but I included it in my petition.

Help!

Much appreciated!

[wrinkleigh]

You could discharge your personal obligation with a CH 7.

[Bankruptcy20]

this is an old post above, but can I add a question to this:

Doesnt this run the risk of "fraudulent" card, if the credit card company alleges that the original card was opened under false pretenses, and then the charges should not be discharged? Or is that the charges are technically under this so-called company, so the personal liability can still get discharged?

[fltoo]

Most cc's in a business name have small print that say you personally will guarantee the loan, so no problem. Just discharge both as personal.

When my lawyer filled out my paperwork, he had a business card under my business's name and I just asked him to change it from the business name to my personal name on the paperwork just so there would be no confusion. He said no problem and complied. I had guaranteed the loan personally so it really was in my name.

I would not worry about the made up name since you are liable no matter what. If you are questioned, (very unlikely), just say you were thinking of opening up a business and decided not to. Just list both cards on your paperwork in your name.

Although an old thread, this topic comes up a lot.