Frequently Asked Questions(FAQ)

What happens if you stop paying your business credit cards?

You could be sent to collections where a collections agent will seek to collect from you. In other instances the credit card company may sue you for the unpaid debts.

Can credit card companies take my business to court?

Yes, if your business is the entity who borrowed money from the credit card company, then the business may be taken to business court and sued. 

Can a credit card company sue you after 15 years?

In most cases there is a statute of limitations, where a credit card company only has so many years since the facts unfold to sue you for your unpaid debts. Look up your local states statute of limitations for specific details. 

What percentage of debt is typically accepted in a settlement?

Anywhere from 30% to 80% depending on age of the debt, debt holder’s financial situation, the creditor, etc.

About the Author

Kal Salem

Kal Salem

CPA, PMP and Finance Consultant

A CPA and finance professional working with small businesses to educate owners and grow alongside their businesses. He holds a Masters in Accounting and a BS in Supply Chain Management. Owner at Salem CPA Services LLC.

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