Credit Card take out for boss

[numnum]

My mum's boyfriend took a credit card out in his name but for his boss to use for his small company

At the time the business would've had to lay off all 10 staff but to save that happening my mums boyfriend took out a credit card so that the boss could by the supplies he needed to complete jobs and get money in to pay everyone

However, the company has nearly gone bankrupt and most staff have either left or been paid off. I have found out their is £12,000 on the credit card.

My mum is now worried sick and the boss does pay minimum payments every month but is always missing payments then pays after the pay date so late fees etc is getting added on. Now the business is in a right mess and she's worried they will never see any of the money

Is their anything they can do so they can get it in writing that its not my mums boyfriends debt? They now are scared to go out or do anything in case there left with this huge debt. My mums bf is now unemployed and they are living of my mums small wage.

[squarebear]

No offence but that was a pretty stupid thing for him to do. The credit card company will go after your boyfriend if it is not repaid. What made him do such a thing?

[daffy654]

I'm sorry to tell you this but the debt is your mum's boyfriends debt as the card was applied for in his name. If the boss stops paying there is nothing that can be done to make him pay up. It is all down to the man whose name is on the card.

[numnum]

the boss asked him and at the time the company was due a big amount of work and he thought it would help save the jobs of all the staff. sadly the work fell through and things got worse for the company

we all know it was a silly thing to do but at the time it was just meant to be a couple of thousand but the boss kept adding more to it

[ummmm]

What a silly thing to do. I suppose the could try to recover the money through the small claims court if it can be proven that it was used by the business. When he applied for the CC he would have ticked agreeing to the terms and conditions thus making it his responsibility for re-payments.

[numnum]

i'll mention the small claims to him. i've told him to go to the CAB and see what they say.

They would be able to see that all payments are coming from the boss's personal or company account and that everything that was bought on the card is materials for the business

[milly143]

I'm sure your Mum's bf did this with the best intentions to help his colleagues but it was really a bad idea. I would doubt if the debt can be transferred to his boss and if his boss/company goes bankrupt he has very little chance of reclaiming any money. When a company liquidates, the assets are calculated and then there is a pecking order in who gets paid first out of any money left. I believe this staff come first and then any outstanding VAT or corp tax bills. (someone correct me if I am wrong). Some time ago my Dad lent some money as a friend to help get his business started up. The 'friend' did a disappearing act and when tracked down my Dad took him to court to reclaim the money. Whilst Dad won the claim, it was only to be paid back at something like 50p a week. I think your Mum's bf is going to find it very difficult to resolve this.

[ummmm]

He does have a case then. If I were him I'd get on the phone to CC company asap. They can be quite helpful if you keep them informed.

[ummmm]

Milly...staff do not come first. They are way down the list.

[mccfluff]

make sure you ring the cc compnay ow, explain the sit and get the card cancelled so no more charges can go on.

[numnum]

my mums bf has the card and gives his boss the statements every month.

i've phoned my mum and told her to get him to call the cc company and the citazens advice.

[themas]

As already said, the legal position is quite clear. The card is in his name & he is the only person liable for the debt. The cc co. will not be interested in anything else.

His only remedy - if the boss does stop paying - is a Court case against the boss or - if it is a limited company - the company. He should succeed with this & if he did then he ought to be able to make a claim against any assets the boss or company have. For example, if the boss owns a house with equity then he could possibly get a charging order on it.

However, this is not going to help him with paying the cc co. (assuming the boss stops paying), because it the time scale will be wrong. He might even have to make himself insolvent (Debt Relief Order or bankruptcy) to get rid of this debt - assuming he has no assets such as a house.