Legal Question in Bankruptcy in District of Columbia

Re: Discharge of a corporate credit card

A corporation cannot obtain a Chapter 7 discharge. An individual responsible for the card can, and the discharge would cover liability on the card account (provided no exception to discharge, suc as fraud, would apply).

Re: Discharge of a corporate credit card

If there is a personal guarantee on the credit card, and that individual files a bankruptcy petition, then yes, it can be discharged. And yes, it would stop litigation against that person. A corporate bankruptcy would absolve the corporation of the liability, as well, but it would not make sense to file a corporate bankruptcy unless absolutely necessary.