Most of the debt were owed to by other people and the chances of recovering my money is grim. Can a credit card company go after my personal assets should I default? I have a limited liability company.
Chances are yes, if the credit card company if you used your name for the application for them to base the credit on (very common), but depends on how the application was set up.
If you got the credit card for yourself, or got it for the LLC and personally guaranteed it, then you'lll be personally responsible for the debt, and it doesn't matter (to the credit card company) that others owe you money. Check the terms of your credit card's contract to see who's responsible and what the company's remedies are, and if you're personally liable, get proactive. Ask the company for forbearance from collection and a payment plan so they don't sell your debt to a collection agency or sue you for a judgment.
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.
If you have personally guaranteed the LLC debt or if your social security number was used on the application to get the credit then you are on the hook. If they sue you, they can get a judgment and attach wages, levy bank accounts or put a lien on any property you may own. Bankruptcy would eliminate all of this from happening. I am located in San Diego and can offer assistance if interested. I offer free in person or phone consultations to go over all available options. Please contact me if you would like more information.
Mr. Larkin is licensed to practice law in CA and is located in San Diego. His response here does not constitute legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Larkin strongly advises the questioner to confer with an attorney in their own state to acquire more information about the specifics of their case.
