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Corporate CC Debt Discharged in Ch7 BK; CA Contacting Me


sailonsilvergirl
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Hi,

My first post here. I haven't needed this discussion forum topic for quite a few years, but figured sometime I would hear from a creditor again. Leaving the past behind can't really be so easy. Also my apologies, I don't understand all the abbreviations & lingo here, so I'm sure I don't need to spell everything out like I am below. I'll learn!

Here's the history: I was a part owner of a business incorporated as a C-corp. We used many personal credit cards for the business, but had one card that was in the business name, Capitol One. All documentation I received from Capitol One was in the business name. I saw the other recent thread here that discusses corporate vs personal responsibility, and I do believe that when I originally applied for the card, I did sign paperwork with my name. I do not remember if I supplied my SS#, and I no longer can find a copy of that application.

The business filed for chapter 7 bankruptcy about 4 years ago. This Capitol One debt was discharged. (The outstanding debt on our personal credit cards was not part of the filing; we had to pay that.) I get quarterly updates of my credit report, and Capitol One has never placed this debt on my credit report. (I don't know if that's relevant in this case, but seemed interesting, at the least)

I never heard from Capitol One for 4 years. Then last month I got a phone call & a mailing from a credit agency with an offer of a "settlement" on Capitol One debt. They are saying they'll settle for 1/2 of the amount owed. I informed them that this was discharged in a corporate chapter 7, four years ago. The response was that my name was on the card & so I am still personally responsible for the debt. I said I would check with the bankruptcy lawyer and get back to them. We haven't been able to reach our former bankruptcy lawyer, and we now live in a different state.

What do you recommend I do??? I really don't know where the personal vs corporate responsibilities begin & end in this case, but I do know that the creditor is not the one with the advice in my best interest!!! I don't know where to start to figure out what to do, to be honest. Any advice would be appreciated.

I could look up the bankruptcy case #, etc. & send that to them, but that would only show that this debt was discharged and doesn't answer the personal debt issue that they're raising. ??????? Thanks in advance for any help!

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The whole deal of personally guaranteed corporate debt is not entirely clear. As it was esplained to me by our BK lawyer, if the company went bankrupt, we may still have personal responsibilty for the debts we did guarantee. That's why he suggested we file personal BK and simply let the company die. That way nobody can come at us for unsecured corporate debt.

FDCPA was really intended for "personal" debt, but I have had some luck using against collectors that came after me for corporate debt that they claim I signed for personally. I would treat these guys like any other CA and demand verfication that this is your debt...and that you did indeed personally guarantee it. Make them prove it with copies of the original contract and all charges listed.

It may be that you DID NOT personally gurantee this debt. Who is the original creditor? And who is the collector? Some of the bottom feeders simply work off of lists of officers or owners of failed companies and try to intimidate them into paying debts of the company.

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Thanks ... do you have guidelines on this site as to what a debt verification letter should include? I have never heard of this letter before. As I mentioned above, I'm new to all this. During my last go-around with debt, we knew that the only answer was for the company to close, so rather than go through all these processes with the creditors, the business filed ch 7.

Does anyone know if there are websites that do a good job of discussing this personal liability for corporate debt?? I'm having a hard time tracking something credible on Google; it pulls up a lot of bankruptcy business solicitations. I find it's helpful for me to know credible information because it helps me to see the holes in what the debt collector is telling me.

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And, I should also mention that the same week we received the notice from this credit agency, Capitol One sent a solicitation in the bankrupt business' name for a new credit account!!!!! After four years. Can you believe that. My husband works in the database marketing industry, so I understand that business, but geez, talk about the right hand not knowing what the left hand is doing.

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