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Steinlaw
Steinlaw, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 1811
Experience:  Consumer law attorney, author of California Debt Blog, Businessweek.com top foreclosure attorney
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Hi, I have a two Business American Express cards for 18 years.

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Hi, I have a two Business American Express cards for 18 years. I am running into trouble and do not believe I will be able to make payment which is due in two days. I am just trying to refinance my house and take money out but that is going to be awhile. The AMEX card does not show up on my credit report. I have not been active with my business for years now but have always used the card and paid the balance as it was my preferred card. What kind of trouble will I be in come Friday. My balance is $8,000. I don't believe I am going to be able to catch up, I tried selling jewerly, but I just had a gas leak at my house and plumber charged $2,300 to fix but Gas company came back to turn on but they say there is still a leak. Plumber now wants more money. I am in real trouble and want to give up. If I do not pay AMEX will it show up on credit report against mortgage.
Thank you.
I am sorry you are going through this.

If you do not make your payment, AMEX will call you and start asking you for the money. You will explain you are having some problems and you need some time. They will send you a debt collection letter, called a dunning letter. You will then respond with a debt validation letter (see www.budhibbs.com or www.californiadebtblog.com) and get more time. Hopefully by then the loan on the house will be done and you will have some cash to pay this off or at least make a payment.

They will report to the credit bureau but not for 30 days. So you have some time there. They will not put a lien on your house until they get a judgment so you have plenty of time with that.

Good luck.
Customer: replied 6 years ago.

I just want to make sure you understood me. The cards have my business EID #. They are business cards. They currently never show up on my credit report as other credit card do. I therefore thought they would not show up if I was late, am I incorrect. I also did not think they could put a lien on my house, only my business, is that wrong.

 

Thank You.

What type of entity is your business? Is it a corporation, an LLC, a partnership or a sole proprietor?
Customer: replied 6 years ago.

It is a sole proprietor Sub - S corporation.

They are going to come after you personally. First, if you have been using it and your business has been inactive for years, they are going to say that you converted this to a personal card. That will then allow them to come after you.

Second, the terms of use of the card allow them to sue the user of the card. So, while you have a Sub S, they will say that you made the charges and then sue you instead of the business. Once they get a judgment against you, they can put a lien on your house.

Good luck.
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