One Charge Off
I have several credit cards. Will one charge off affect the other credit cards that are in good standing? Bank stop sending statements in my business line of credit and suddenly after 3 months they the took all the money from my business checking account and my wife's checking account that I have jointly. Can they also take money from my wifes personal account that she has alone? And will this charge off affects my other credit cards?
Reply from DebtCollectionAnswers.com:
We are sorry to hear of the problems you're having. In many cases, business credit lines are personally guaranteed. The lender may have the right to offset your business loan with personal funds you have on deposit with them.
In most cases lenders can't go after a spouse's individual accounts, unless the spouse cosigned or guaranteed the loan, or you live in a community property state. Georgia is not a community property state.
However, to be safe, if your wife's personal account is with the same financial institution where you had your business line of credit, she may want to move her funds.
If the charge-off on this line of credit is reported to the credit reporting agencies, then it may result in your other credit card companies lowering or closing your credit limits on those cards. It's hard to predict what they may or may not do.
If you have substantial debt and are worried this incident will threaten your business or personal financial situation, you may want to talk with a bankruptcy attorney.
Please keep in mind we are not attorneys and cannot give legal advice.
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