business credit cards

April 29th, 2008 by Questions

My husband is declaring bankruptcy in his business. He had a small business with his mother and she will probably declare too. The company credit cards are full and he used his personal cards and 1 of mine as well. Will his personal cards be cleared as they were used for the business and so was the one that I had. He was the secondary card holder on my card and I paid off whatever I had on the card..all that`s left is what the business owes. Will it be cleared too as this was not my debt.

Questions

One Response to “business credit cards”


, Barton Goth GCO Bankruptcy Trustees said:

A business bankruptcy can only clear debts that are listed in the business name. As soon as a purchase is made on personal credit cards, regardless of whether the purchase was for the business or not, then the debt becomes personal. As such if the business declares bankruptcy the personal credit card debt will remain and you and your husband will be responsible for paying that card down.

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