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Roger, Attorney
Category: Business Law
Satisfied Customers: 30897
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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My wife and I owed a corporation in Brigantine, NJ. We closed

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My wife and I owed a corporation in Brigantine, NJ. We closed it down approximately 5 years ago. There was a credit card that we owed money on ($10,000) we could not pay it. American Express wrote it off as a unclollectable debt. The file was bought by different collection agencies. We do not have the money to pay this bill. We were under the understanding that if it was a corporation credit card we would be protected from debts that happened after the close of the company. The collection agency stated that my wife signed for the card personally but they cannot provide us with a copy of the contract. We do not belive that this was a personal card but a business card. Is there any case law or any thing that we can do to keep the collection agency from following a judgement against us, as they are in the process of doing?

If there is no personal guarantee signed by either of you, the creditor cannot seek to collect from you personally. In order to collect from you personally, the creditor would have to prove to a judge that you signed a personal guarantee. If it cannot produce documentation or other evidence to prove that she signed a guarantee, the court will not grant it a judgment against you personally. However, a judgment against the business would be obtainable.


If the creditor cannot prove that she signed a personal guarantee, then you are correct in denying liability (if you agree to pay, they've got you). You should demand that they prove personal liability, and if they cannot or will not, you should have nothing to worry about.


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