If I opened a company credit card while serving as executive director of a nonprofit, am I responsible for the organization’s debt on the credit card?
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If I opened a company credit card while serving as executive director of a nonprofit, am I responsible for the organization’s debt on the credit card?
I was later laid off by the board and the company is now heading towards bankruptcy. Will I be protected by bankruptcy law?
Asked on October 31, 2012 under Bankruptcy Law, Texas
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If the credit card is in the name of the organization and all of the charges were for the non-profit and not for your personal benefit, there should not be an issue. You need to review the actual contract and if this debt goes to bankruptcy, you may be interviewed by the trustee but that should be it unless as an executive director you held a contractual personal guarantee.
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