Legal Question in Business Law in Minnesota

I live in Minnesota but incorporated a business in Nevada. I've since dissolved the corporation and there is a credit card with a balance of about $4000 that is in the name of the corporation. I'm making regular payments on this card but I'd like to know what my personal liability is if I'm no longer able to make the payments. Would the credit card company be able to come after me personally for the balance? Would the nonpayment on the corporate card have an impact on the interest rates for personal cards I carry with this same issuer?

The corporation had no assets at the time it was dissolved.

Thanks for your help.

Asked on 2/14/11, 7:58 am

2 Answers from Attorneys

Kevin B. Murphy Franchise Foundations, APC

s a Franchise Attorney I can say this. The answer depends on a number of factors. Did you personally guaranty the credit card issued to the dissolved corporation? Normally, credit card companies don't issue corporate cards to new entities without a personal guaranty. Beyond that, the credit card company would need to "pierce the corporate veil" to come after you personally. Depending on how the corporation was set up and subsequently dissolved, this may or may not be possible. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 2/14/11, 8:06 am

Robert Kane Law Offices of Robert D. Kane, Jr.

I agree with Mr. Murphy's response. Unfortunately the credit card company is probably going name you and the corporation if it decides to file suit (if you default). You will have to properly defend yourself if that becomes the situation. Another thing you may have going against you is that you have been making the payments since the corporation was dissolved. The credit card company argue that you accepted assignment of the debt. I am not sure whether this will affect you personal credit rating, this also probably depends on the agreement(s) you entered into.

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Answered on 2/14/11, 11:34 am

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