Philips&Cohen/Advanta

[ifucan]

New to forum and appreciate all the excellent advice on here. I'm involved with a LLC, and personally guaranteed a business credit card with Advanta. Collection Agency, billing themselves as the offices of Philips&Cohen called stating I had to pay them a settlement. If I did not make a settlement they would advise their client to file a suit.

Again I'm in a llc w/partners but I did the personal guarantee. What am I facing here(debt is $11 grand)? Would they just come after me or the llc itself?
If I were to pay it off, could it ever be "repaired" on your credit?

Lots of questions, I know but trying to offer as much detail as possible.
I guess debt is 8-9 months since last payment. Should I send a small payment to Advanta direct? $50 or so? Own a house and a car, they can't try and do anything on those,can they? Especially since it's unsecured debt?

LLC just simply owns some rental houses in mine and partners names. They can't do anything on thos,can they?

Wow, lots of questions! Thanks!

I am mad at myself for all this though! For now on I'm living debt free!!!

[rescue me]

You said you personally guranteed debt. I would think that no matter what, you would be responsible, though I am not familiar w/llc. I'm sure there are others here more knowledeable. The fact is when credit is given to a company, and you sign for it personally, it is in fact your responsibility.

A co. would have to be very large to have credit card extended w/o a person taking responsibility, or a long history at D & B.

Of course the usual would apply here, sending DV, but it is still a unsecured debt, unless your original Advanta stated otherwise.

Own new car w/o payments due? House has mortgage?

Where I'm going is that it would be handled like a personal credit card, and the formula on how far they will take you is the same as a personal cr. card.

Law firm says will sue you, in writing? Save that letter, if this is not straightened out, between you and Advanta's reps (do they own debt, or represent Advanta?) that letter I think would be a violation.

Re-post let us know.

Anything I post here is not legal advice, but an opinion, based on learned knowledge from my experience in credit industry.

[rescue me]

Sorry, just noticed you wrote they would "advise Advanta". That answers a lot of questions.

Ok, so going back to my experience in the industry, somewhere, somehow, down the line, maybe not now, you would seem vulnerable. You own property, one of the parameters for debt buyers, and lenders for litigation.

Now if your cr. bur shows you owe ten other cards several thou each, it changes everything. If it shows you with a high score and paying everyone, but Advanta, you would be vulnerable.

Again, not legal advice, I'm new and just feeling my way around town. Yikes, wait till you see my problems.

Ever hear the saying you'll keep your own, if you knew other folks problems?
Mine will be out there soon. You will feel very happy w/just that one Advanta card.

[ifucan]

Sorry, just noticed you wrote they would "advise Advanta". That answers a lot of questions.

Ok, so going back to my experience in the industry, somewhere, somehow, down the line, maybe not now, you would seem vulnerable. You own property, one of the parameters for debt buyers, and lenders for litigation.

Now if your cr. bur shows you owe ten other cards several thou each, it changes everything. If it shows you with a high score and paying everyone, but Advanta, you would be vulnerable.

Again, not legal advice, I'm new and just feeling my way around town. Yikes, wait till you see my problems.

Ever hear the saying you'll keep your own, if you knew other folks problems?
Mine will be out there soon. You will feel very happy w/just that one Advanta card.



Thanks for responding. I truly wish it was more than just the one card. Unfortunately I had another business along with this particular llc,which I'm involved in with 2 other partners. Through the other business I had several other cards and loc's I had to default on as the other business went under and I had no income. Still "self employed" as I just found work but on a commission based. I have a mortgage and 2 car payments. I'm barely hanging on. Other llc that this particular card w/Advanta I personally guaranteed,the llc owns real estate. Houses we are landlords on. Since I personally guaranteed this should not effect my partners as it's my debt, not theirs.

I'm currently 5,going on 6 months behind on my house payments, and 5 months behind on another house my daughter lives in. I'm currently in pretty dire strates unfortunately. The mortgage companies don't call and wear me out like the collection agencies. Sure any good person wants to pay their bills and I wish I could. But my business failed and the credit card companies charged me 30% interest each month so I think they made quite a bit. I'm just trying to prevent foreclosure and keep a roof over my head and keep a car so I can drive to the office.

I even spoke to another guy calling me today(on a Sunday) from "Client Services" . I told him to send me something in writing. States he had and I said my attorney wants a current "statement". Then he asks what my intentions are, bankruptcy, am I going to pay his client (Cap.One). Again I reiterated just send me something in writing and I'm not discussing anything verbally. I did lose some control and call him a bottom feeder but then got my composure and said,"that's it, thanks." and hung up. He was of course rude and a complete jerk.

Mortgage companies are working with homeowners but credit cards, who most got a bail out, charge loan shark interest if your even an hour late, hire 3 party collection agencies to hound you.

Ok if they sue, all I can do is show what I have....NOTHING!

Thanks again and look forward to hearing from you and anyone else with an opinion on this.

[rescue me]

I wish some of the heavy hitters would weigh in here, but like a bank acct co mingled w/someone else's cash in it (lets say checking) that bank acct would be subject to lien IMHO, even though other folks funds are in it, if any of those funds are yours. If the houses in the LLC have others names on it, they may be subject to a lien anyway, not sure. Same as the checking acct.

I believe for any of the property to be clear of liens as a result of judgements against you, the property would have to be clear of your name. Again I'm a newbie here, and worked in the collections field, tracing etc years ago.

As far as the cr. cards go they can call on Sunday. Why haven't you sent certified letter to contact you by mail only, and desist calling? I would suggest that, it shoud take a little of the stress off of you.

I'll be posting my problems soon enough. We're all pretty much in the same boat, nothing to be ashamed of.

In your case, I would be wondering if there were any principal home you wanted to protect. Though in the electronic age, skip tracing pretty easy, no sense giving them the info verbally, would speak as little as possible to collectors, unless negotiatiating a sttlmnt.

Also, are you in touch w/your business partners what is their situations, do they know of yours, because if you cause an otherwise debt free company to lose its credit rating, and wind up in litigation, it could get stickier w/your business partners.

Not enuff info, and wish some of the more knowledeable members would post here for you. I am limited by my experience, realtor, collections, cr. counselr, and since I wind up here, maybe wasn't very good at any of them.