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How does bankruptcy of an managing member of an LLC effect the company when the afore said person use his credit to obtain company credit cards?
DanielLinder
His BK doesn't involve the LLC directly. If the Cr Cards were issued to the Co with him as co-signer - then the Co needs to pay them, it is a Co obligation, and he should make sure that occurs, or things get messy for both! If it is his credit card, the Co should still pay and will need to get it's own new ones, as these will liklely become unusable. The BK parties onwership/intererst as an investment asset in the LLC will probably be involved and maybe sold/tranferred to a creditor of his. (Can't have him not pay debts and yet keep a owneership interest in a biz that is worth something).
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∙ 15y ago
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If a credit card company sues you can you file bankruptcy?
Thier actions, or lack, do not effect your ability to file for bankruptcy.
How will a bankruptcy effect your credit score?
will bankruptcy increase you credit score over time
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The bankruptcy will appear on their credit if you include this card in your bankruptcy. If you leave the card off the bankruptcy, it will not effect their credit.
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A bankruptcy stays on your credit report for 10 years and you may have to answer about it for the rest of your life. Who knows what effect it has on your credit score? Companies that lend money. Only when you apply for credit after bankruptcy will you know the full detrimental effect.
What effect will a five year old bankruptcy have on getting bonded that requires a credit check?
What effect will a five year old bankruptcy have on getting bonded that requires a credit check?
Does personal bankruptcy effect business credit?
In a Proprietorship, the personal bankruptcy of the proprietor may cause shut down of business. Whereas in Partnership and Joint Stock Companies, bankruptcy of Partners, Directors effects business credit immensely as bankers become shy in extending further credits to the company.
How does bankruptcy effect your credit score?
First off once you file bankruptcy you cannot do it again for 7 years. Bankruptcy stays on your credit report for 10 years. Rather to try to describe what the different types of bankruptcy will do to your credit click the link for more information.
If I file bankruptcy on my credit cards only how much does it effect my credit?
You probably won't be able to get credit for the next seven years.
If you have affordable auto insurance before filing bankruptcy based on good credit do you have to tell the insurance company you filed?
BK will not affect any insurance policies that are already in effect.
How long does using a credit consolidation company negatively effect your credit history or rating?
Many lenders look at credit counseling as a bankruptcy. If you have debt that is managed and paid by a CCC and the agreed upon repayment schedule is being met then it should not effect your credit score. However, if you plan to buy a house, most mortgage lenders will turn down borrowers in credit counseling.
Does bankrumpcy for premarital debt affect my husbands credit?
Yes, if your husband has a bankruptcy before he got married it will still effect his credit.
How long does a bankruptcy show on your credit?
Bankruptcy will always be on your credit scoring record. After the bankruptcy is discharged it will have a less negative effect, and then after 6 years it is supposed to be considered done with and you get get a mortgage, loans etc. However, having a bankruptcy on your record will always have some negative effect even after the 6 years are up. Bankruptcies are maintained on a credit report for at least 10 years.
