I can't pay my company LLC credit card debt. What is the worse that can happen?

Question

I have a small business LLC which folded recently, and I can't pay off the company credit card debts. What will happen to the company, and to me?

Answer 1

Since you folded the company nothing can or will happen to it.

On the other hand, from what I know of credit card companies  I am fairly certain that when you applied for the credit card they had you sign a personal guarantee.  If so, you are on the hook for the debt.

You are also on the hook if you neglected to specify LLC as part of your company name.  That is because if you don't specify the fact that your business is an LLC the other party is entitled to assume they are dealing with either a sole proprietorship or a partnership in which case the individual making the application is liable for the debt.

In any event since they can't collect from the company they will come after you for the money due them.

If it turns out that you are on the hook for the debt your best alternative is to make at least the minimum monthly payments called for on your statements.  The next best alternative is to  negotiate payment terms.  (Many credit card companies will stop charging interest and settle for a long term payout of debts that they feel they otherwise can't collect.)  

Hope this helps

Jerry-the-bookkeeper