Business Debt Guarantor no longer part of the business.

[randy776]

I have a question about settling a charged off account for my business.

We opened a credit card account in 2001 for my business. At the tome the account was opened, my business partner signed as the personal guarantor of the account with me as the authorized user. In 2006 my partner left the business. We maintained the account in good standing until 2012 when it defaulted.

I am trying to settle the account as the business owner. I prefer not to involve my former partner. Can the creditor negotiate with me as the business owner or does the former partner HAVE to be a part of the negotiation.

I should note I am willing to settle the account in full, I just want to negotiate payments rather than a full lump sum. To date the creditor has indicated that payments would have to go through the guarantor.

Do I have any rights as the licensed owner of the business to avoid the guarantor involvement?

 

[Zigner]

The bank can choose to deal with the guarantor. It appears that the bank has lost faith in your "good faith" negotiations.

ETA: Also - what state are you in?

 

[randy776]

I am in WV. Actually they have been very agreeable except for that one issue. They know they I do not want to involve my former partner and therefore I fear they are using that as leverage to collect one lump sum.

 

[Zigner]

I am in WV. Actually they have been very agreeable except for that one issue. They know they I do not want to involve my former partner and therefore I fear they are using that as leverage to collect one lump sum.

That may very well be...and that is their choice.

 

[randy776]

Maybe I should rephrase the question....

CAN they negotiate with me? They are indicating that the only thing I CAN do is make a lump sum. They indicated that legally they have to inform the guarantor if I make a few payments to satisfy the debt. I can find anything that indicates that.

 

[Zigner]

Maybe I should rephrase the question....

CAN they negotiate with me? They are indicating that the only thing I CAN do is make a lump sum. They indicated that legally they have to inform the guarantor if I make a few payments to satisfy the debt. I can find anything that indicates that.

They CAN negotiate with you. They CHOOSE not to. I suspect, however, that your "lump sum" would require them to write a portion of the debt off and that would adversely affect the guarantor, for which they likely are required to notify the guarantor.

 

[Antigone*]

Maybe I should rephrase the question....

CAN they negotiate with me? They are indicating that the only thing I CAN do is make a lump sum. They indicated that legally they have to inform the guarantor if I make a few payments to satisfy the debt. I can find anything that indicates that.

They don't have any incentive to negotiate.

 

[randy776]

Actually i have indicated from day one to pay in full. the subject of negotiation is to split up the payments over a few months. ironically, they have accepted 2 payments.....without contacting the guarantor....but keep indicating no payment schedule can be made with me.

 

[Zigner]

Actually i have indicated from day one to pay in full. the subject of negotiation is to split up the payments over a few months. ironically, they have accepted 2 payments.....without contacting the guarantor....but keep indicating no payment schedule can be made with me.

Right - you are going to pay late (split payments over several months.) That will likely impact the guarantor's credit.