Legal Question in Bankruptcy in Utah

What To Do?

Hello-

Here is my problem:

I owned a small business and American Express issued me a corporate gold card back in 1995. I'm delinquent 4-5 months and the account has been turned over to Nationwide Credit for collection. They will only settle for a lump sum payment, which they reduced to $4,800. I have until Friday to come up with the money. Otherwise, they will continue to try to collect this debt from me as well as 2 of my ex-emplyees who I had issued additional cards to. Apparently, Amex considers them co-signers, even though they never signed anything or even knew that they would be considered co-signers. (I just handed them the cards for their business use.) I received the monthly bill---they were never billed individually.

My question is, can I file bankruptcy over this? Also, my car was repossessed last night. (can it get any worse?) Can this be included in the bankruptcy and can I still get the car back?

The only thing is, if I file bankruptcy, will there be a ''stay'' from trying to collect? Or can Amex refuse the bankruptcy and go on to try to collect from these 2 folks?

FYI--I no longer own a home.


Asked on 10/30/02, 7:22 pm

2 Answers from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: What To Do?

If your emplopees did not sign for the account they cannot be held liable, notwithstanding the threats. It would be a violation of the Fair Debt Collection Practices Act for the collection agency to even attempt to collect. It is a violation as well for the collection agency to threated to collect from them. (Unfair collection practice.)

If you file bankruptcy immediately ("emergency filing") you may be able to get the car back, if they have not already disposed of it. Filing bankruptcy "stays" all collection activity. Call a bankruptcy specialist in your area.

Read more
Answered on 10/31/02, 12:33 pm
Andrew Nichols Law Office of Andrew B. Nichols

Re: What To Do?

I believe you should file a chapter 7 bankruptcy case as soon as possible. Your attorney should be able to get the car back epsecially if you file soon. AMEX will be stayed from all collection activity with respect to the card and the debt on the card will be discharged (bankruptcy term that means eliminated) in the chapter 7 case.

If you have any questions do not hesitate to call me personally. My firm will handle Salt Lake City cases. ph. (800) 303-0720

Read more
Answered on 11/01/02, 5:44 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Utah