corporate card lawsuit

[tonekilla]

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

I was recently employed with a firm based in Houston, TX. As part of my employment, I was issued a corporate credit card. I used the card for both personal and business reasons, with every intent of paying the balance in full. Due to excessive time off due to illness, I was terminated. I am now unable to pay the balance, and have received a letter from a law firm stating that I will be sued if the balance is not paid in full. What options do I have to remedy the situation? I would like to pay this balance, as I do owe it, but am unable to even pay to keep my cell phone on at the moment. Please help!

 

[Proserpina]

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

I was recently employed with a firm based in Houston, TX. As part of my employment, I was issued a corporate credit card. I used the card for both personal and business reasons, with every intent of paying the balance in full. Due to excessive time off due to illness, I was terminated. I am now unable to pay the balance, and have received a letter from a law firm stating that I will be sued if the balance is not paid in full. What options do I have to remedy the situation? I would like to pay this balance, as I do owe it, but am unable to even pay to keep my cell phone on at the moment. Please help!

You need to find a way to pay, obviously, or negotiate a repayment plan. Are you disability or anything else?

Lesson to other readers:

Never, ever use your corporate card for personal items.

 

[Antigone*]

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

I was recently employed with a firm based in Houston, TX. As part of my employment, I was issued a corporate credit card. I used the card for both personal and business reasons, with every intent of paying the balance in full. Due to excessive time off due to illness, I was terminated. I am now unable to pay the balance, and have received a letter from a law firm stating that I will be sued if the balance is not paid in full. What options do I have to remedy the situation? I would like to pay this balance, as I do owe it, but am unable to even pay to keep my cell phone on at the moment. Please help!

Beg or borrow.

 

[tonekilla]

You need to find a way to pay, obviously, or negotiate a repayment plan. Are you disability or anything else?

Lesson to other readers:

Never, ever use your corporate card for personal items.

I am willing to create a payment plan, but am not sure how to proceed. No I am not on disability. I also do not own any property or have any other form of income at the moment. I realize that I have made a huge mistake. As I said, with my salary, I could easily repay the amount with one paycheck, but lost my job due to illness. Should I contact the attorney directly? I left on bad terms with the company, and I know they won't be willing to work with me. If I am sued, and do lose, what would happen since I have zero assets and zero income?

 

[Antigone*]

I am willing to create a payment plan, but am not sure how to proceed. No I am not on disability. I also do not own any property or have any other form of income at the moment. I realize that I have made a huge mistake. As I said, with my salary, I could easily repay the amount with one paycheck, but lost my job due to illness. Should I contact the attorney directly? I left on bad terms with the company, and I know they won't be willing to work with me. If I am sued, and do lose, what would happen since I have zero assets and zero income?

Call the attorney's office.

 

[Proserpina]

I am willing to create a payment plan, but am not sure how to proceed. No I am not on disability. I also do not own any property or have any other form of income at the moment. I realize that I have made a huge mistake. As I said, with my salary, I could easily repay the amount with one paycheck, but lost my job due to illness. Should I contact the attorney directly? I left on bad terms with the company, and I know they won't be willing to work with me. If I am sued, and do lose, what would happen since I have zero assets and zero income?

What's basically going to happen is that they will likely file in civil court, and they'll obtain a judgment.

I'm going to assume that they're not going to make a criminal complaint (since it could be technically theft), but if they do that's when you're going to need an attorney.

Once they obtain the judgment, they have an awful long time to collect on it (ten years in Texas, and the judgment can be renewed).

However you're also lucky - Texas does not allow wages to be garnished for civil debts (there are a few exceptions to this which don't appear to apply).

They can levy your bank account though (which essentially amounts to the same thing if you have your wages direct deposited into the account), and any other non-exempt assets.

I'm not affiliated with, nor am I recommending, this attorney but their website contains some very useful information:

http://www.westonlegal.com/judgmentsintexas.htm

 

[tonekilla]

I will contact their attorney's office first thing Monday morning. I'm terrified - I've never had any legal problems before and really wish I had a way to just pay the full amount. Any advice on what information I should provide to the law firm, or any information that I should not voluntarily disclose? Of course, I do not consider any advice on this forum to be legal advice, just some general information to help guide me in this dire time. Thank you all for your responses and for providing such an invaluable service to the public!

 

[ESteele]

First, stop being terrified. The damage is already done. Now you need to focus on how to fix it. The attorney is not a cannibal or a hit man (in all likelihood).

Second, you should think about a payment plan. Perhaps you can offer to pay back X amount while you remain unemployed each month. This amount should be entirely manageable since you do not want to miss a payment. You want to slowly but surely eliminate this debt. You can also offer to pay back a significantly larger amount once you gain alternative employment.

The attorney representing your former employer does not want to make suing you his or her life’s mission. (He or she likely works for the law firm which normally handles your old company’s corporate matters, not a traditional debt collection firm.) The attorney probably already realizes you cannot pay back the entire amount in one payment. As a consequence, he or she will likely agree to a repayment plan in order to get this matter concluded (and off his or her desk).

Your obligation is to negotiate and stick to a plan you can pay. As much as possible, you do not want to fail to make payments down the road.

 

[Beth3]

I was issued a corporate credit card. I used the card for both personal and business reasons, with every intent of paying the balance in full.

You NEVER use a company credit card for personal purchases. Lesson learned, I expect. Hopefully you can work out a mutually agreeable repayment plan. Good luck.

 

[wavehopper27]

Would filing a personal bankruptcy discharge the debt? I know it's extreme but I was just curious.

 

[Victorxyz3]

Would filing a personal bankruptcy discharge the debt? I know it's extreme but I was just curious.

Yes it would.

 

[ElephantSntNose]

Yes it would.

That is not exactly true. The accurate answer would be this: It depends

 

[eerelations]

That is not exactly true. The accurate answer would be this: It depends

Willlyjo isn't interested in accuracy.

 

[Antigone*]

Willlyjo isn't interested in accuracy.

I had a hunch this was willie.