I am starting a business and I have alot of past debt one of which is an old credit card owing around 20,000. I was sued by this card although I never showed up in court. They sued me and withdrew what ever I had in my personal account which was about $30. I since closed my account and never had one since this is about year later. I am going to start a home based skin care line but am wondering if they will come after me. Does any one have any advice or know if they can take from a business account? Is there anything I can do to avoid this. I do plan on paying them back but first I need to make the money. Help!!
2007-11-05 11:55:16 · 3 answers · asked by Christina 2 in Business & Finance ➔ Personal Finance
If you need to borrow money to start up this business, you may want to consider friends and family and stay away from financial institutions. Your credit info is networked through several credit rating systems and is a matter of public record. Even if the company has written the debt off, that is an internal procedure for tax purposes, however for collections/legal purposes, this debt can be on the records for years.
So, if you need to borrow from a bank, try to settle with your previous lendor. If not, lay low, pray for success and at some point go back and offer a settlement. It will be a pleasant surprise. Make sure they submit a letter of absolvement, removing you as a credit risk from all credit reports.
2007-11-05 13:36:27 · answer #1 · answered by liorio1 4 · 0⤊ 0⤋
If you are still in debt to them, then they have first claim on all your assets as collateral. You should consider paying off their debt. How did you wind up in such a big debt with a credit card company anyways? One advice for the future, spend wisely. Did your creditors say that your debt has been written off? If they didn't, then they still have first claim to your assets. I would consider taking a loan from your bank to pay off these creditors first because credit card companies charge a much higher interest rate than bank loans. Not sure the bank will pay the loan because they might find this case and might not trust you with the money. Unsure about that. If you can take the loan, great! Pay off the debt, then take an additional loan to start your business. Whatever profit you make from the business, set aside a large amount to pay back the loan. Hope everything goes well. Good luck!
2007-11-05 12:28:35 · answer #2 · answered by DynamiteAnswers 2 · 1⤊ 0⤋
You will be hounded by bill collectors for years until you pay up. You can't hide they will find you.
2007-11-05 13:28:57 · answer #3 · answered by Goodhead 3 · 0⤊ 0⤋