Credit Policy for businesses and how to extend credit and manage credit risk

I was asked this question yesterday by someone who dissolved their business, they wanted to know if they had to pay back the credit card debt in their business’s name since they dissolved the company. They also wanted to know if this would be reflected on their credit report.  When I told them they should contact the credit card company and set up a payment plan and also cancel the card, they said they would rather file bankruptcy.

Remember, you have to qualify for bankruptcy and if you do it will be reflected on your credit report for 10 years, but many negative items are removed after 7 years. 

Take Care of your Credit!