Debt owed to past employer – taking legal action
August 20th, 2009 by Questions
I had a Amex corporate card from my past company I worked at and used the card for many personal purchases given the benefits of collecting points, etc. Due to my horrible spending habits I racked up quite a balance on the card over the past 2 years. I was not being charged interest and had no problems and made payments as I went along, but not enough. Amex requires payment in full but for some reason, they didnt bother me about it and I ignored it as well.
Now, I was recently laid off from the company (for different reason entirely) and subsequently the card cancelled. Because I cannot pay the balance on the card given my financial situation, my past company is taking legal action to recover the amex balance. I had assumed that I would be liable for the balance to amex but it seems that my past employer is responsible for it (?); very confusing at the amex card agreement says otherwise.
Would filing for bankruptcy get rid of this debt I owe to my past company/amex? We all think bankruptcy is for credit cards, loans, etc, but does it apply to my situation as well? Because I do not have any real assets, the legal case from my past employer will likely end up as wage garnishment for a long time (after i find new work). Will bankruptcy stop this? Is my past employer looked upon as a `creditor` like any other credit card company for example trying to recover debt owed to them?
thanks for your help
Posted from: Ontario