Employees responsible for Corporate credit debt?

[Loyaltysucks]

Our California company filed chapter 11 after not paying the corporate credit bills of several employees. The Credit company is now coming after the employees. In their agreement, they state that the employee is the obligator and by signing or using the card, that constitutes acceptance of the agreement. None of the employees ever received a copy of the agreement, we were all just given cards. Had we known this, we would not have used the cards. The Credit company says that whether we read it or not we are liable and they expect us to pay and will send
the debt to collections if necessary. Do we have any recourse? All the debt was for company purposes and in many cases charges were made at the instruction of our superiors. The company is being purchased out of chapter 11.

 

[racer72]

If you used the cards then were reimbursed by the company, you can be held liable. But if you used the cards and the bills were paid by the company, you cannot be held liable for the bill. The name on the credit card should be the responsible party.

 

[Loyaltysucks]

None of the employees ever personally paid the
bills. The company always paid the bill.
(so we weren't reimbursed)
However, the credit card company says technically, that is the way it is supposed to work. We charge the business expenses, pay the bill and the company reimburses us.
As far as the name on the card, it has the employees name
and the company name.

Ex. John Doe
XYZ Corporation

 

[racer72]

They got you then. Your only option is to make a claim against the company in bankruptcy court. You should have been listed as a creditor by the company and notified when they filed the chapter 11. You need to do this soon. The other company buying your company may have to pay off all creditors for the chapter 11 to be accepted. That way you all will be paid. A chapter 11 bankruptcy is like a chapter 13, in allows financial reorganization, not debt dismissal.