Credit Card Company Going after Authorized Credit Card Signer

[lmarkie]

From 2003 to 2008 I owned a business. In 2005 I hired my wife who was not my wife at the time. Just an employee in charge of Accounts receivable and Accounts payable. She was an authorized signer on 2 credit cards. One with Capital One and with Bank of America.

I filed for business bankruptcy and personal bankruptcy. My personal bankruptcy was discharged in January of 2010.

Today Capital One called her and demanded she pay them the account amount that was discharged from my bankruptcy. Can they do this? It was discharged from both my business and personal bankruptcy. Is this just a money hungry bailout company that wants a tax payer to pay them more? Capital One borrowed 3.5 billion from the government. Bank of America got 45 billion. I didn't get a bailed out.

Anyone have any legal suggestions?

[justbroke]

Business never discharge debt... they only either reorganize or liquidate and close. How is she an authorized signer? Do you mean that you added her to the account as an authorized user? Did she sign any credit card agreement?

Know that many "business" credit cards are personal guarantees. Some cardholder agreements -- including additional cardholder agreements -- find the additional cardholder responsible for their specific charges on the card.

The real thing to do is to just send them a copy of the discharge, discharging "your" personal guarantee, and demanding that they stop trying to collect since the "authorized" user did not incur that debt. Tell them that you'll file a motion for sanctions.

(The bail out doesn't apply to you, as you know. By the way, Bank of America paid back their TARP "loan" in full.)

[lmarkie]

She was the secretary of the business on state records allowing her to be an authorized user. I did not added her to the account as an authorized user and she did not sign any credit card agreement.

Capital One also paid back in full. Point is someone got a break. Not complaining, I'm jealous.

[justbroke]

Capital One also paid back in full. Point is someone got a break. Not complaining, I'm jealous.

They repaid their obligation, which is why I mentioned it.

As for your spouse, since she was an officer of the company, she may be liable. What was the organization of the Company? LLC or other closely held corporation?

[lmarkie]

Incorporation

[justbroke]

Interesting to see how the Corporation is responsible for the debt. if only you signed it as an officer, then it was your personal responsibility. I think that the creditor may think that the corporation and it's officers are liable -- your wife is an officer.

You'll have to fight and see where this goes. I do suggest the route I listed above.