Partnership/Credit Card
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- usrper
my friend was partnering with someone for a start-up. they opened a shared company credit card on my friends credit line.
the guy went on splurging on that card and can't pay off the debt, and is affecting my friends credit.
any similar experiences or advices (about the aftermath)?
thanks in advance.
- cannonball19780
advice - dont share money or debt
- usrper0
yes yes. im asking more about what he can do now that it happened. Heard you can transfer debt to the other person if he has a card.
- ********0
small business court.
Cancel the card.
Terminate friendship.
- EPtype0
take him to court
- usrper0
.
- bjladams0
that's really tough, sorry to hear.
my partner and i started our business with nothing but a debit card - and that's still how we run, if it's not in the account we don't spend. and no plans on borrowing money or debt either.- < Its a slow but steady growth with a strong foundation. I respect it.ETM
- usrper0
yea, don't know what they were thinking..
- horton0
not that unusual or backward thinking. assuming they incorporated the business and card was in business name.
pretty normal to have a company card, but on bank records it will be in one person's name and that person is ultimately responsible for the card activity. court isn't going to fix. folding the company and dividing debt between shareholders in % of share is most likely.
but i'm no lawyer.
- ETM0
^
It sounds like they only formed as a partnership (like a sole proprietor, personal liability) and not as a legal identity corp, so if the other guy was essentially a cosigner to guarantee the card, he's sort of screwed. Not much different than if your spouse went and racked up your joint card.
- Projectile0
just saying
- Milan0
what was he spluging on? hookers & blow or company-related things?
- usrper0
its an LLC
i think the hookers and blow *are* the company related things. not 100% sure.
