Personal Liability for Small Business Credit Card Debt Liabilty
My question involves collection proceedings in the State of: Georgia
My father passed his business on to my brother in 2009. At that time the company was doing well and there were two credit cards open for use by the business, in my father's name. Now, the business is about to close and the credit cards are in default with large balances. My father has dementia and medical problems and needs full time care. I have Power of Attorney and am handling his financial affairs as well as his medical care. Paying these cards off with his funds could greatly reduce necessary money available for his care. Collections companies are calling me and I'm not sure what to do. Should I try and negotiate a lesser amount? It's a horrible shame because my father isn't responsible for the debt, but I guess legally, he is.
Re: Small Business Credit Card Debt Liabilty
Yes, with the accounts in his name, he's legally liable for the balances.
Sure, you can attempt to negotiate a discounted lump sum settlement with the creditors.
But why bother.
Why not just ignore them and use the money for your father's care.
Eventually there won't be anything left for the creditors to get.
Just make sure you get his money out of his name and stash it someplace safe.
Above is not "legal" advice.