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Law Educator, Esq.
Law Educator, Esq., Attorney
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Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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My business (a C-corp) filed for ch-11 bankruptcy protection

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My business (a C-corp) filed for ch-11 bankruptcy protection 4 months ago. That business had a credit card in its name with a $490 balance at the time of filing. That balance was shown on our list of non-secured creditors. However, the bank has since written that amount off, and dinged my personal credit history because I had a personal guarantee on that card. Can they do this without first sending me notice, invoking my personal guarantee and giving me the option to pay it out of my own funds?
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

If you had a personal guarantee, the creditor does not need to give notice under current FTC regulations before they make a report to the credit bureaus I am afraid. They would need to give you notice if they were suing you over the amount, but not to make a report to the credit bureau as you were merely a surety on the account and a surety is not entitled to notice under the regulations I am sorry to say.



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