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Charged off Business Debt on Personal CR - How to remove?


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10 replies to this topic

#1 stevem11

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Posted 21 August 2010 - 04:17 PM

My business went under about 1.5 years ago and as I result I could not pay my BLOC and Business credit cards. They are all now charged off and am I trying to settle the accounts.

However, in the mean time I am trying to clear up my personal credit reports. About half of the biz accounts reported to my personal credit report and the other half did not. Has anyone been successful getting bad business debts off your personal credit report? These all did have a PG, but the debt itself is in the name of the corporation, not my name. I was only the PG, so technically these were not my loans.

I think I read a post a while back of someone in the same situation who just wrote the CRA's and said it was a business loan, not personal, and the CRA's deleted the account from his PCR.

Anyone have experience with this? Thanks



#2 BRBiz

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Posted 21 August 2010 - 04:39 PM

My business went under about 1.5 years ago and as I result I could not pay my BLOC and Business credit cards. They are all now charged off and am I trying to settle the accounts.

However, in the mean time I am trying to clear up my personal credit reports. About half of the biz accounts reported to my personal credit report and the other half did not. Has anyone been successful getting bad business debts off your personal credit report? These all did have a PG, but the debt itself is in the name of the corporation, not my name. I was only the PG, so technically these were not my loans.

I think I read a post a while back of someone in the same situation who just wrote the CRA's and said it was a business loan, not personal, and the CRA's deleted the account from his PCR.

Anyone have experience with this? Thanks


I guess you didn't and don't understand the meaning of a PG. No offense! It doesn't matter if it was all business debt, when you signed for those loans you took the responsibilty of paying these back if the business could not. They have every right to report this to your personal reports and they will remain on there for the the next 7 years or so and there really isn't anything you can do about it.

The best you can do is dispute each one and say it was business debt and let them prove it was PG'd and if they cant then it will get removed but if they have the paper work then it will stay on there.

#3 stevem11

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Posted 21 August 2010 - 05:36 PM

I guess you didn't and don't understand the meaning of a PG. No offense! It doesn't matter if it was all business debt, when you signed for those loans you took the responsibilty of paying these back if the business could not. They have every right to report this to your personal reports and they will remain on there for the the next 7 years or so and there really isn't anything you can do about it.

The best you can do is dispute each one and say it was business debt and let them prove it was PG'd and if they cant then it will get removed but if they have the paper work then it will stay on there.


Yes, I know what a PG is. My point was that this is a business loan, not a "consumer" loan, therefore it should not be placed on my "consumer" credit reports. Furthermore, I may have garaunteed the loans, but they were not my loans, they were the business's loans, which is a seperate legal entity.

Anyways, I was just trying to get them off my personal credit reports and would appreciate any input from people who might have gone through the same thing.

#4 ansky0007

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Posted 21 August 2010 - 06:23 PM

I guess you didn't and don't understand the meaning of a PG. No offense! It doesn't matter if it was all business debt, when you signed for those loans you took the responsibilty of paying these back if the business could not. They have every right to report this to your personal reports and they will remain on there for the the next 7 years or so and there really isn't anything you can do about it.

The best you can do is dispute each one and say it was business debt and let them prove it was PG'd and if they cant then it will get removed but if they have the paper work then it will stay on there.


Yes, I know what a PG is. My point was that this is a business loan, not a "consumer" loan, therefore it should not be placed on my "consumer" credit reports. Furthermore, I may have garaunteed the loans, but they were not my loans, they were the business's loans, which is a seperate legal entity.

Anyways, I was just trying to get them off my personal credit reports and would appreciate any input from people who might have gone through the same thing.


If you read the PG's that you signed they will all state that if you default they will report on your personal credit. This is standard procedure when a business account defaults. Also, If you were a Sole Prop business at the time even if you did not sign a PG since you were a sole prop you are both equally responsible. You can try to dispute but unless you get luckly they will not go anywhere.

#5 BRBiz

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Posted 21 August 2010 - 08:54 PM

I guess you didn't and don't understand the meaning of a PG. No offense! It doesn't matter if it was all business debt, when you signed for those loans you took the responsibilty of paying these back if the business could not. They have every right to report this to your personal reports and they will remain on there for the the next 7 years or so and there really isn't anything you can do about it.

The best you can do is dispute each one and say it was business debt and let them prove it was PG'd and if they cant then it will get removed but if they have the paper work then it will stay on there.


Yes, I know what a PG is. My point was that this is a business loan, not a "consumer" loan, therefore it should not be placed on my "consumer" credit reports. Furthermore, I may have garaunteed the loans, but they were not my loans, they were the business's loans, which is a seperate legal entity.

Anyways, I was just trying to get them off my personal credit reports and would appreciate any input from people who might have gone through the same thing.


What do you think is the reason fo a PG. Yes you are totally correct you and the business are two serprate entity's but you basically co signed for your business. Like if you co signed for a auto loan for your buddy and he defaults now your both responsible for the repayment of that loan even though it wasn't your car. Get my point?

If they couldn't put it on your personal report what would be the purpose of a PG.

#6 alpha12

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Posted 23 August 2010 - 08:38 PM

My business went under about 1.5 years ago and as I result I could not pay my BLOC and Business credit cards. They are all now charged off and am I trying to settle the accounts.

However, in the mean time I am trying to clear up my personal credit reports. About half of the biz accounts reported to my personal credit report and the other half did not. Has anyone been successful getting bad business debts off your personal credit report? These all did have a PG, but the debt itself is in the name of the corporation, not my name. I was only the PG, so technically these were not my loans.

I think I read a post a while back of someone in the same situation who just wrote the CRA's and said it was a business loan, not personal, and the CRA's deleted the account from his PCR.

Anyone have experience with this? Thanks



First and foremost I would like to tell you, how sorry I am your business failed. As a business owner myself it is very saddening to keep seeing the little guys getting crushed. The responses your getting seem as if they (no offense) are taking a bit of a laugh at the fact that these hit your personal files.

Almost like, whaddaya think was gonna happen buddy..and that isn't right guys/gals. Your posts are coming off pretty strong,and this poor person just lost there business. More like their way of life,and is no joking matter.

And Believe me,please don't think I'm trying to start anything with anybody, I seen that other post that got that one guy booted!!!

But they are correct my friend, once you PG something as you know, you run the risk of getting your personals hit. I would suggest you link into the dispute links in the personal credit section of the boards, you'll get more friendly and true advice over there. Not to say you won't find it here
but from my lurking,some of the biz credit members are wild cowboys!! and they do shoot people!! lol

I could get shot for just saying this,but you should focus over there for personal repair and over here for business building.

So sorry for your losses,but no loss is forever,keep through your struggle and be a fighter, there is always a way, some ways are just harder than others :rofl:

#7 BRBiz

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Posted 23 August 2010 - 09:44 PM

My business went under about 1.5 years ago and as I result I could not pay my BLOC and Business credit cards. They are all now charged off and am I trying to settle the accounts.

However, in the mean time I am trying to clear up my personal credit reports. About half of the biz accounts reported to my personal credit report and the other half did not. Has anyone been successful getting bad business debts off your personal credit report? These all did have a PG, but the debt itself is in the name of the corporation, not my name. I was only the PG, so technically these were not my loans.

I think I read a post a while back of someone in the same situation who just wrote the CRA's and said it was a business loan, not personal, and the CRA's deleted the account from his PCR.

Anyone have experience with this? Thanks



First and foremost I would like to tell you, how sorry I am your business failed. As a business owner myself it is very saddening to keep seeing the little guys getting crushed. The responses your getting seem as if they (no offense) are taking a bit of a laugh at the fact that these hit your personal files.

Almost like, whaddaya think was gonna happen buddy..and that isn't right guys/gals. Your posts are coming off pretty strong,and this poor person just lost there business. More like their way of life,and is no joking matter.

And Believe me,please don't think I'm trying to start anything with anybody, I seen that other post that got that one guy booted!!!

But they are correct my friend, once you PG something as you know, you run the risk of getting your personals hit. I would suggest you link into the dispute links in the personal credit section of the boards, you'll get more friendly and true advice over there. Not to say you won't find it here
but from my lurking,some of the biz credit members are wild cowboys!! and they do shoot people!! lol

I could get shot for just saying this,but you should focus over there for personal repair and over here for business building.

So sorry for your losses,but no loss is forever,keep through your struggle and be a fighter, there is always a way, some ways are just harder than others :rofl:


I wasn't laughing at the guy but I explained the reality of it and he just doesn't want to hear it. He wants the magic spell to get it removed and I told him the only option he really has and that is to dispute it and let the creditors show proof that he PG'd.

My point was it didn't really seem like he even knew what a PG was. First thing in business is to know what your getting your self into and understand everything you sign. I personally know a handful of guys who started a business and it failed after a couple years just for the fact they had no business sense and got them selves into alot of trouble with customers and vendors. It can happen to any one but if you never ran or managed a business its going to be alot harder for you. Not saying that this is the case with this guy just in general.

Off subject a little, but lately alot of the newbies or people that dont come here often are bitching about others not being helpful or positive about others replys and I think your really pushing alot of the people who know what they are doing off the boards. No one is trying to be hurtfull just honest. That is a sign of a business owner who knows what they are doing. To be succesfull at business you cant sugar coat stuff you need to be honest and straight forward. Just my two cents!

#8 KYBOSH

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Posted 24 September 2010 - 11:18 AM

:wub: Well said

#9 TrainerC

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Posted 12 February 2012 - 07:09 AM

I am in the same situation, bk due to business failure. I have noticed that Experian reports some of the discharged business accounts as joint and the type as "business account personally guaranteed." Does anybody know if this makes a difference in scoring or length of time the items day on my credit report? If so I will challenge the other accounts.

#10 dconawa

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Posted 12 February 2012 - 09:29 AM

My business went under about 1.5 years ago and as I result I could not pay my BLOC and Business credit cards. They are all now charged off and am I trying to settle the accounts.

However, in the mean time I am trying to clear up my personal credit reports. About half of the biz accounts reported to my personal credit report and the other half did not. Has anyone been successful getting bad business debts off your personal credit report? These all did have a PG, but the debt itself is in the name of the corporation, not my name. I was only the PG, so technically these were not my loans.

I think I read a post a while back of someone in the same situation who just wrote the CRA's and said it was a business loan, not personal, and the CRA's deleted the account from his PCR.

Anyone have experience with this? Thanks


Hello Stevem11,

You may be able to have the debts removed based on the FDCPA the Fair Debt Collections PA. I am still working on this but it looks like if it is business debt (proof) then it CANNOT be attached to your personal credit. As I stated still working on this in the legal library. However, I had a business checking account that was listed under my personal credit (CHEXSYSTEMS). The business had it's own tax-id# and I got it removed based on state statutes that specifically say business checking account CANNOT be attached to personal credit. I will let you know additional information when I find out.

Good Luck.

#11 TrainerC

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Posted 12 February 2012 - 09:41 PM

Unfortunately once the business is late or defaults, if you PG the debt is "yours". So it can be reported on your personal credit. ;In fact, my Equifax credit report describes these accounts as "business credit card (individual has primary responsibility)" or "business loan individual is personally liable."

Now I am not 100% sure that I signed PGs for each of these accounts so I will challenge them with the CRAs and ask the creditors to produce proof of the PG. I am curious, however, as to whether the FICO formula counts these equally to actual personal debt.

Edited by TrainerC, 12 February 2012 - 09:43 PM.





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