Skip to main content

Business Fraud? Debt incurred after the business closed but bank account remained unknowingly open...

Los Angeles, CA |

I opened a business bank account in 2001 with a partner. The business never got off the ground and I was told by my partner the account was closed within several months of opening it.

I had no contact with the partner after 2003. Now in 2010, I learned that a credit card in my name remained active on this business account for the sole benefit of the former partner. The partner made online purchases and payments using the card. I never received statements nor was I every contacted by the bank. The account has now gone to collections and the bad debt now shows up on my credit rating. The partner is now bankrupt.

Is this still shared partnership debt or did this become fraud?

Thank you for your time.

Attorney Answers 3

  1. Your describing credit theft. It is fraud. It may be very simple to prove and if the defendant had any assets it would be worth pursuing the case. The problem is when you get a judgment can it be collected.?

  2. You need to consult a bankruptcy attorney to review the facts with you. From what you have said it could be fraud, identity theft or your debt, it all depends on many more facts that a bankruptcy attorney can address for you.

  3. Your ex-partner committed identity theft, which you should report to the police, and then dispute the negative credit information with the credit bureaus. Please see this FTC link:

    Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.

Bankruptcy and debt topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics