[Ronniv]

I am enrolled in a debt negotiation program to pay off my credit card debt. Two of them are going after me in court totaling $17,000.00 before a settlement was reached. If a judgement is reached against me, can they take my dump truck, which is worth $25,000.00?

[JudyKayTee]

Depends on the State, if it's a personal judgment or a business judgment, how your business is organized. Need more info.

[Ronniv]

I live in Utah, It is a business credit card under my name, I am in a partnership with my dad. It is under an LLP. We have three trucks, two under his name, one is under mine. Thanks Judy.

[JudyKayTee]

In NY unless you are incorporated your assets can be seized to pay off a personally guaranteed debt. That sounds like what you have here. I think an issue would be whether they even WANT your truck. Because the economy is so rough (I'm in NY) you also very well may be able to make a legal argument - if it comes down to it - that you NEED the truck in order to have an income and if you employ other people that would be a bonus for you.

[PellMell]

I live in Utah, It is a business credit card under my name.

Your terminology is confusing. If you have a business credit card, it should be in the name of the LLP (limited liability partnership.) If "under my name" means that the card is a personal card that you use for business debt, it is a personal card. Please clarify.

I am in a partnership with my dad. It is under an LLP.

One purpose of an LLP is to limit the liability of one partner against another. A corporation or an LLC will insulate stockholders or members from personal liability for the debts of the entity. You would need to investigate whethere an LLP in Utah provides any such protection.

We have three trucks, two under his name, one is under mine.

Why doesn't the LLP own the trucks? If your truck is held in your name and not the name of the LLP, the credits can probably get to your truck. If your truck is worth $25,000 and is paid for, it will be of interest to a $17,000 creditor.

[Fr_Chuck]

At the end of the day, it sounds like

1. You and your dad have not set your business properly to protect yourself and the business.
2. also if the card is in business name, they may also go after dad's interest in the business also.

It does sounds like you have mixed business and personal property and credit, but I may be wrong.

To the issues

A credit negotiation is only good if the credit card people are willing to accept, they are under no obligation to, and it is possible that you have also be cheated by one of the many fraud companies that take advantage of people in debt with programs that don't work or promises they can't keep.
If you are still being sued, it is obvious that you either waited too long to make a deal, or they just don't want to deal.

If you own the truck outright, can you not borrow against it, to pay this debt ?

[JudyKayTee]

HE has a business credit card (which I take to mean a credit card for the business) in HIS individual name; vehicles are likewise registered in individual names.

I find nothing that "insulates" a partner from another partner OR reponsibility for a business debt in Utah - and that is where OP is.

Anyone have differing info, please post it.


An Attorney has to look at the business set up.

I find this: "The general partners manage the business and share fully in its profits and losses." - UT Admin Code R994-202. Employing Units. June 1, 2010.

[PellMell]

I would argue that a "business" credit card in her personal name is nothing more nor less than a personal credit card. Take American Express, for example. Even if a person has a Corporate Card issued to the business, that person is personally (jointly and severally) liable for payment of the card. See the American Express Business Platinum Card Cardmember Agreement ("The Basic Cardmember and the Company remain jointly and severally liable for all Charges made on the Account.")

Regarding the issue of personal liability with an LLP, from the Utah Division of Corporations Website, emphasis added:

A Limited Liability Partnership (llp) is a business relationship in which one partner is not responsible for the negligent acts committed by another partner or by the employees not under that partner's supervision. A Limited Liability Partnership is essentially a General Partnership, but each partner is not liable for certain acts of other partners. An LLP also limits the personal liability of a partner for the errors, omissions, incompetence, or negligence of the partnership's employees or other agents. State laws vary regarding LLP's and only about half of the states recognize them. Each of the partners (there can be more than 2) shares in the profits and shares in the debts of the LLP, including losses, unless the partner is a limited partner. A LLP is considered an association of co-owners for tax purposes, and each co-owner is taxed on his or her proportional share of the LLP profits.

Without more information from the original poster, it will be difficult to provide a definitive answer. Each state's laws are different, and I am not personally familiar enough with Utah Limited Liability Partnership laws to provide a sufficient answer.

If Judy returns, hopefully she will confirm that the company is, in fact, a limited liability partnership (LLP) and not a limited liability company (LLC). In many states, the choice of an LLP is only available to professional services firms and companies. Again, I do not know if Utah has that limitation.

The suggestion to borrow against the truck to pay the claim seems to make the most sense to me. Doing so could save a lot of time, money, and stomach acid.

[JudyKayTee]

Judy has no way of confirming anything; I only know what OP has posted.

You are saying exactly what I said - he has a business card in HIS individual name. It's HIS individual card; HIS individual debt - as he appears to have posted the scenario. I understand how credit cards work.

I don't see the LLP statute applying at all - OP has said he was enrolled in a debt consolidation program for HIS debts (this credit card). He has said HE owns a truck.

I see no need to make this terribly complicated - after posting over 21,000 times I tend to take the situation at face value unless/until the OP comes back with additional information.

Seems cut and dried to me and FrChuck may very well have the best solution. I'm not seeing vehicles seized here (in NY) for debt because so many are repossessed for non-payment, the market is glutted, there's a lot of time and trouble involved and a Judgment lives for 20 years. NY creditors trust that within the next 20 years they'll either get paid or find some other asset.

But, again, I see no need to complicate this beyond what OP has posted.

[PellMell]

Sorry, I didn't mean Judy. I meant the original poster. I'm not used to the comment section of this board yet. Ronniv was thanking Judy instead of signing the comment as Judy. My mistake.

It would be nice if the law were not so complicated.

Rather than expound further, I'll wait for additional information from the original poster, or I can go away completely if I'm creating no more than a distraction in the discussion.

[JudyKayTee]

Happens all the time - no problem. Unless OP comes back none of us can answer the question in any more detail.

Because this Board contains questions from all of the States, plus Canada, plus Europe and parts of Asia, yes, it can get complicated. To sort of "uncomplicate" things I have learned to ask where OP is located and stick to exactly what is posted - or else your typing fingers will be worn away to nubs.

By the way - welcome aboard.

[Ronniv]

Your right Judy, It is a credit card under my name personally, with my business name on it. I feel my best course of action is to maybe stop the dealings with the Debit Negotiation Service, and work out a payment plan with the creditor. Is that somet

[JudyKayTee]

Ronniv - I would suggest that you contact the creditor directly. It can't hurt you and could very well be less expensive for them to settle and for you to settle than both of you incurring fees.

Thanks for coming back - I thought I understood the situation and I appreciate you coming back to say that I did.

Let us know how things work out.