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cortrightlaw
cortrightlaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 513
Experience:  Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
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Are credit cards issued in name of business actually business

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Are credit cards issued in name of business actually business debt or personal since name appears on them as well?
They are usually secured both by the business and you personally. Most businesses cannot obtain credit on their own and the owners usually have to personally sign and guarantee the debt.
Customer: replied 4 years ago.
So if I was to file a personal bankruptcy they would be personal debt? Would they try to attach my new company (incorporated service business)?
Yes that is the problem your personal bankruptcy will protect you but not your business. Usually my clients file a personal bankruptcy and close the business if it has no assets and is not making money. They can then reopen a new business without the burden of the debt.
Customer: replied 4 years ago.
Would Chapter 13 be the way to go to just get a plan I can deal with payment wise? Is the credit hit just as bad?
Depends on your financial situation, chapter 13 will be for 3-5 years and unless you pay back the debt at 100% you will be in the same position of the business still being on the hook for the debt. And the credit hit is the same.
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