Legal Question in Credit and Debt Law in Minnesota

credit card liability

I am the officer of a new business. When we applied for a business credit card, I was asked to sign along with another officer. Am I liable for the debt on this card if the company files for bankruptcy? At this point the other officer (president) is making the payments on the card, if something happens to him and those payments stop, am I personally liable for the remaining debt? If so, is there anything I can do to limit that liability? The credit card company refused a request to make him sole signator.


Asked on 1/30/09, 11:51 am

2 Answers from Attorneys
David Anderson Anderson Business Law LLC

Re: credit card liability

Woulkd need to review your cardholder agreement to advise. There may be other precautions you can take as officer of company.

Call or email for assistance.

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Answered on 1/30/09, 11:55 am
Sam Calvert Calvert Law Office

Re: credit card liability

Well, I hope the card has a low limit. You need to read whatever agreement you signed. Likely it is a personal guaranty, meaning the card company can collect from either of you. You and the other officer should sit down, carefully assess the situation, and take some action to try to protect yourselves. I would have to know more facts about the condition of the business and its assets, if any, before being able to say much more than that.

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Answered on 1/30/09, 10:47 pm


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