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I'm self employed (via an LLC) and 90+ days past due on business credit card debt (that also has a personal guarantee). The account has been closed by the CC company and it being handled by a collection company. I can still make payments to the CC company, but they will not talk to me and say talk to the collections company.


I sitll make money to live on from my business, but it is substantially less then I used to make and less then what I need to pay my bills. As a result my business debts and personal debts (mortgage/car included) are all 30 -120 days behind. My house is worth much less then I owe so basically I am insolvent and could file bankrupcy.

I do not wish to file BK at this time as I believe I will get my business turned around within the next several months. Plus I do not want to lose my house (even thought financial it would probably be a smart thing to do and rent for a couple of years).

A few questions with respect to the business credit card.

1) It is my understanding business credit does not fall under the Fair Debt Collect Account, but I can't find out if this is true for small self employed businesses as well as I've read some things that seem conflicting.

2) I'm trying to negotiate a smaller payment plan with the CC Company/Collector but at this time they are saying I am not offering enough (I can't afford what they what and live (and still going behind on personal debts). The collections company has send a letter (and I have talked with them) saying I've been referred to collections and the letter states I have 30 days to dispute the validity of the debt. I see many places on this site saying it should be disputed, but a)this is a business debt, and b) my info is on the letter already (CC Company, account number, amount owed) plus the CC still owns the debt. So I don't really see a point in disputing it yet unless someone can tell me otherwise (ie, Should I?).

3) I assume I will be sued if is eventually not paid. Questions is how much time ( a range) before it happens and a judgement is rendered and they can collect (30 days, 90 days, several months or more)? If it is several months and I can get my business turned around then I assume I could make much larger payments at that time and/or maybe settle.

Any thoughts, experiences, opinions, etc... would be greatly appreciated.

Thank you.




Welcome to our DebtCC forum :)

I think you should talk to the original creditor regarding this and try to explain your financial position at the present juncture. If they refuse to budge then respond to the collection agency that contacted you. I think the best way for you to come out of this situation is to negotiate with them and come to a repayment plan.

Sub: #1 posted on Wed, 08/20/2008 - 22:22

phoenix phoenix
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I don't think there is an actual time frame for a suit. They can do it whenever they want. My mother inlaw was sued after 2 1/2 years - and they still sued her even though she is on ss only. I would continue to tell them that $xx is the amount you can pay. Make a copy of your check & send it, and when they cash it, copy the cancelled check, At least this way if they do file suit, you at least can show proof that you were attempting to pay on it. I dealt with that on a med bill myself. All I could commit to was $40.00 month - I told them if I have more in a month, I would send it, but I could not feed my children & keep a roof over their head if I paid more. They finally relented, and sure cashed the checks quick. Just PLEASE keep records of everything to keep yourself safe. Good Luck

Sub: #2 posted on Thu, 08/21/2008 - 16:40

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Also - I am not real familiar with LLC's - my business is a C corp, but check into any protection from your other bills with this. I know the one with the personal guarantee has to be paid, but you may be able to get some help. Go to a small business website for your state - there is alot of info there.

Sub: #3 posted on Thu, 08/21/2008 - 16:43

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