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Who to contact? Lawyer or Accountant?

Hi there,
In short when the business that I`m in with my partner (of which I still don`t own any shares after 4 1/2 years of work) needed some business credit cards I opened up an American Express card to help out. I didn`t realize at that time that I was personally guaranteeing the card. I thought it was on our business line because it`s never shown up in my personal credit report.
Well, fast forward to now, the company now owes a good deal on the cards and have defaulted on payments so AMEX called me and it`s hitting my personal record pretty soon.
What protections do I have being that this is a business card as far as payment is concerned? I know it`s a debt that the business has incurred but how do I shoulder it on the companies books and not me personally?
What kind of lawyer do I need to contact to get advice on this issue?
It`s frustrating needless to say. I`m getting out of this business soon but also wanted to make sure everything is ok with the credit card payments and what not.
~Allen
In short when the business that I`m in with my partner (of which I still don`t own any shares after 4 1/2 years of work) needed some business credit cards I opened up an American Express card to help out. I didn`t realize at that time that I was personally guaranteeing the card. I thought it was on our business line because it`s never shown up in my personal credit report.
Well, fast forward to now, the company now owes a good deal on the cards and have defaulted on payments so AMEX called me and it`s hitting my personal record pretty soon.
What protections do I have being that this is a business card as far as payment is concerned? I know it`s a debt that the business has incurred but how do I shoulder it on the companies books and not me personally?
What kind of lawyer do I need to contact to get advice on this issue?
It`s frustrating needless to say. I`m getting out of this business soon but also wanted to make sure everything is ok with the credit card payments and what not.
~Allen
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Comments
Your claim is against the company. Again, if it is below $10K then you would be lucky to break even hiring a criminal lawyer to sue the company for fraud. You might have better luck in small claims court where the maximum award is usually around $5,000 (depends on the state).
However, I sense something that wasn`t said. You probably have nothing, not even a memo from the company that ties their purchases to them. In court they will likely claim that it was a personal contribution to the company (I.E. a "gift") and does not need to be repaid.
Maybe you can ask the company IN WRITING that they either give you the cash to pay the Amex bill or to give you all items and equipment purchased on your card. You want their response IN WRITING.
Next, call Amex and try to work out a payment plan.
I hope that you are just young and inexperienced rather than older and really stupid. What have you learned here?
Just frustrating that`s for sure.
Lesson learned: Get ownership papers in a company before you start working and don`t depend on the good word of the others and secondly don`t open up a credit card for the company unless you own the company yourself. Cause no one else will treat it as important as you will.
Life goes on.
Thanks for the advice and comments.
~Alllen
Have you tried writing the company a letter asking for the money or the equipment purchased on your card? If you want to pursue it in small claims court, the limit is usually $5,000 in most states. Some are higher, some lower. The "demand" letter is a prerequisite to a small claims suit. You stand a pretty good chance that the company will inadvertently admit their fraud. By the way, if the company is not incorporated, you sue both the company and the principal owner. This way if the company is broke, you may still get a judgement against the principal owner.