Reply
New Contributor
Project17
Posts: 137
Registered: ‎11-21-2012

Re: Charging cards up and not paying

[ Edited ]
I will tell you this much as a business owner and as a person who works with other businesses. It is very very difficult to prove fraud doing this sort of thing. Short of him admitting he racked up bills and was never going to pay its almost impossible to prove. It happens more then you think and I know a few people who have done similar things and never have gotten even threats of criminal charges. This was even a bigger problem years back when they were handing out credit cards like samples to every business with out a PG. People would start a company just to get credit ring up all the accounts and then close the business and it was just part of the cycle of the credit world. Today non PG real credit cards (visa,MasterCard,etc) don't really exist unless you have a long business history and thick high limit credit file. You can still get net 30 accounts and store branded cards with out a PG so people are really limited in terms of how much they could "take" a company for so the risk is very limited now for lenders/creditors.

In terms of racking up the PG'd debt then including it in the bankruptcy that may or may not be a issue. I would think it would depend on how the court views the debt does it belong to the person or the company. But if he waits long enough it wouldn't matter any way.

But you said he is selling the business and if that is the case the new owner would be assuming all the debt the company has including any PG'd debt. The company just doesn't lose that debt when it is sold. So why would some one want to buy a company with debt and bad credit if he does what he says?

Just re read the post and you said selling the business but dissolving the corp... Does he have accounts or something he is selling?

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+