Nabel asked in Business & FinanceCredit · 1 month ago

Any way to get relief from a line of credit?

About a year ago I took out a line of credit from Amex to grow a startup that I kicked off ~$40k. It is an LLC but since we had no revenues at the time I signed a personal guarantee. When covid hit my business went under and I am no longer able to afford making these payments. What, if any, options do I have for relief? Am I obliged to pay this loan in full?

9 Answers

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  • 1 month ago

    Bankruptcy is the only way to get out from under paying it.

  • 1 month ago

    Yes, you're obligated. You don't need Yahoo to tell you that. You know darn well you have to pay back that loan. 

    You're going to have to contact the lender and find out what options they have available to you. If your problems really are related to COVID, there may be relief available to you. But we certainly don't know what it might be here. 

  • Erik
    Lv 7
    1 month ago

    Why don't you ask them?  You're not the only customer with this problem.  Maybe they will work with you.

  • Judy
    Lv 7
    1 month ago

    personal bankruptcy

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  • Scott
    Lv 7
    1 month ago

    You borrowed the money, you are obligated to pay it back. That's how it works.

  • Eva
    Lv 7
    1 month ago

    Signing a personal guarantee negates the protection of the LLC. You're on the hook for the loan. Bankruptcy would be your only option and is not to be entered into lightly.

  • 1 month ago

    To survive in business you must change your plan to stay alive.either go digital or change the way u do business.

  • G
    Lv 5
    1 month ago

    Get a Visa card and pay it off. Quickly get a Master Card and a Discover. This should buy you enough time to change your identity.

  • 1 month ago

    The personal guarantee does make you obligated to pay.   You have the option of filing for personal bankruptcy, but you had better talk to a lawyer before taking this drastic move.

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