UESTION: Am I responsible for LLC credit card debt?

[LLCproblems]

I have approximately $100K in business credit card debt. They are business credit cards. they do show up on my personal credit report (I assume because I had to guarantee them) With the recent freeze on lending, I have no way to pay. being an LLC, am I responsible for this debt? Any insight on how to file for BK on LLC? Any experiences out there?

Thanks!
john

[Overmylimit]

I have business lines that DON'T show on my credit report but if you gave your social on the paperwork you are responsible for the debt. Sorry...

[HHM]

More than likely. Unless you are a large business with several years of existence, most owners will be responsible for the credit card debt of the company through some sort of personal guarantee that was part of the credit agreement.

[BKParalegal]

If the business is a shell company, meaning no real assets in it, then I wouldn't bother filing BK on the business, just file a personal BK and put in the remarks section on all the business debt "personal guarantee on business debt"

Good Luck

[lillaimof2kids]

I agree with the others. We had an LLC company and we were personally responsible for everything in the business name...even the leases not showing up on our personal credit report. When we filed Ch7 personally, we included all our stuff and the business stuff (we were closing the business). Those leases/CC's that were not showing up on my personal credit report, now does...stating it was included in the BK7. A couple of the lease companies tried to fight us saying they were in the Business name, not personal, when we first filed. But it didn't matter because the business was closed.

[biotechsolution]

I have approximately $100K in business credit card debt. They are business credit cards. they do show up on my personal credit report (I assume because I had to guarantee them) With the recent freeze on lending, I have no way to pay. being an LLC, am I responsible for this debt? Any insight on how to file for BK on LLC? Any experiences out there?

Thanks!
john

you're going to have file a personal bk to discharge yourself from the business lines of credit.

[gpatrick]

In Most states. I did read if your business is incorporated. That you are not held personally liability for the debit. Does not mean the credit card company will not try. I would of recommended filing a business bankruptcy not a personal bankruptcy. If it was not incorporated. I would of filed both a business and personal bankruptcy at the same time. You might try a chapter 11 bankruptcy on you business cards if you are incorporated.

[HHM]

In Most states. I did read if your business is incorporated. That you are not held personally liability for the debit. Does not mean the credit card company will not try. I would of recommended filing a business bankruptcy not a personal bankruptcy. If it was not incorporated. I would of filed both a business and personal bankruptcy at the same time. You might try a chapter 11 bankruptcy on you business cards if you are incorporated.

That is true, but nearly universally, for any small business or start-up, the credit agreement provides for a personal guarantee and odds are, the credit was based on this persons SSN.

Business BK's are usually pointless for small businesses.

[StartingOver08]

I have a similar situation. On my personal BK (Ch 7) is listed all my business debt too because of the personal guarantee. The personal BK has a spot for alias names. The name of the corp is in the alias name spot. I have to close the corp because it does not have any separate assets anyway and it is an S corp just like your LLC is an S corp. If the corp is not closed, then any future income earned in the corp account can be siezed by the business credit cards and credit lines through a judgment. This way I do not have to pay for the business Ch 11 which would be expensive and not with the time or money (my attorney's idea). I can just set up another S corp to do business in the future after the personal bk Ch 7 discharge.