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I am new here. I am trying to figure out my options. I have a Costco Amex Open Business credit card for my LLC company. My wife and I are the LLC members and no other employees. My company is failing and we are going to file for dissolution. The only debt we have is this $5K Amex card. What are my options? Am I personally liable for the debt? We cannot possibly pay off the entire amount. Do I need to notify Amex? If I am personally liable, to what extent? Should I negotiate payoff terms?
Any advice would be helpful.
Thanks!
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Green Member
- Join Date
- Nov 2009
- Location
- usa
- Posts
- 1
Amex Open and Dissolution of Business
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Green Member
- Join Date
- Nov 2009
- Location
- Connecticut
- Posts
- 6
Yes, as the only two "members" you are liable for the charges. If I was in your situation I would notify AMEX asap and work out a payment schedule of some sort with them. If you want to avoid serious credit problems you need to start working with your credit card companies as soon as possible. I know this from my own experience and the 3 year battle that I just finished with my own credit report.
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Centurion Member
- Join Date
- Sep 2009
- Location
- Arizona
- Posts
- 411
It depends how you applied for the card. If you gave a personal guarantee then you are personally liable. Unless you had been in business for several years when you applied it is highly unlikely they would have extended credit to a new LLC so you probably gave a personal guarantee by signing the documents. If so then they will certainly expect you to repay it regardless of what happens with the business.
Originally Posted by ghs215
You might want to talk with a lawyer. Oddly enough your best bet might be not to dissolve the business and just let it wither.
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