sued by cc company on an account under realty trust

[noslen]

What is the name of your state (only U.S. law)? MA

My partner and I have a realty trust and obtained a capital one cc under the trust's name. the trust held one investment property and not doing well thus defaulted on the cc payments. I am being sued as a trustee of the trust by a lawyer representing cap one (I'm not sure if the lawyer is a collection agency). On the summons' reply I admitted the debt and offer a settlement for about 30% of the original balance but was denied. My question is: since the debt is non collateral and not under my name (does not appear on my personal credit rpt). Can they put a lien on the trust (which will be dissolved once the property is sold) or the property (had that threat on the letter) or me personally? They are suing me for $21k

thanks

[tranquility]

There are many collection possibilities to get the money from the trust. If you did not sign a personal guarantee, you are not personally responsible, the trust is.

[noslen]

so I am wondering how does this work. I don't think they can put a lien on the property since the card is non-collacteral. They can put lien on the trust for all they want since it will be dissolved. And the trust has no liquid assets except it holds the property

[Some Random Guy]

You need to read the original agreement signed when the creidt card was issued. It would be HIGHLY unusual for a trust, small business, or non-profit group to get credit cards that are not backed by a personal guarantee.

Within the restrictions of the original agreement, the can sue the trust or any personal guarantors to get their money.

[tranquility]

If the trustee distributes money beyond what is available because of liabilities to creditors, the creditor can go after the trustee himself as well as the distribution to get paid. Trustees pay the trust's bills. They don't want to later pay someone else's bill because of a distribution in error.

It seems like you think this bill is not going to be paid. I think it will. And, if the trustee tries to arrainge things to deFRAUD the creditor, he will be personally liable for the debt and, depending on the facts, criminally liable.

Pay the bill or get an attorney to try a fancy house of cards of bankruptcy and quick shifting of assets to a blind trust in the Caymans to not pay. The planning will cost more then the 21K, but, some like to play silly games anyway and may find the cost worthwhile.