Hi Everyone,
I wanted to post my situation here and see if I can get any advise. I am currently in Debt with American express for over 70k. This is a business debt that is under American Express charge card that was opened under my name. The business failed and I found out the my business partner was being dishonest. Long story short, when confronted, he disappeared with all the merchandise and now I am left with this huge debt. Since this card was opened in my name, I am responsible for the debt. I tried to settle with American express but in vain. I live in TX. I have sent them a letter with my settlement offer but haven't heard anything back from them. I assume they are getting ready to file a suit against me. I wanted to see if someone has gone through the same situation as I am and what did they do in that case? I know bankruptcy is an option but for me it is my last resort. I want to settle but the offer I made is the most I can offer to them. If I get sued by them, what is the worst that can happen to me in TX. American Express has since given a Big Law firm the task of recovering this money from me. I know my credit is tanked for now but how long does it take to bounce back from that? Please advise. I appreciate all the help I can get.

WHat is the worst they can do? THey can win the full amount in the judgement... and get a writ of garnishment issued that will follow you until you die... and any estate you leave until its settled. Meaning attatch part of your paychecks and any bank account they can find.

As far as your credit rating? As long as you have a collection on your credit record.. particularly one that large...its not going to bounce back (and a bankrupcy won't change that). Bankruptcy laws have changed so its not as easy to bail out on debts as it once was if you actually have assets they can be paid from. Too many people did that to dodge bills they actually had the resources to pay. Not so easy any more.

If you do manage to pull off a bankruptcy... consider your credit ruined for at least 7 years before it will start to improve.

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Bankruptcy laws have changed so its not as easy to bail out on debts as it once was if you actually have assets they can be paid from. Too many people did that to dodge bills they actually had the resources to pay. Not so easy any more.

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I don't think the changes to the bankruptcy code that Smoothy is thinking of actually apply to this situation. I don't see any problem with getting a bankruptcy discharge in the situation OP has described. The only thing to consider is whether filing bankruptcy would be the best idea; and that is best decided by consulting with a bankruptcy attorney. Or, before you do that, take the required online course (which is required should you decide to file bankruptcy); it is quite inexpensive.