Company Credit Card Liability

With companies going under on a daily basis these days, a good question was presented: Can you be liable for charges that you put on the company credit card if the company goes under but doesn’t file for bankruptcy?

The answer is maybe. It all depends on the terms of the credit card agreement. Some agreement state that the credit card company must go after the company first before they look to you. Others give the company the right to go after the person using the card. Especially if the card was used to purchase something that you keep for yourself as opposed to being in the possession of the company.

Keep in mind that if you use the company card to purchase something for the company and pursuant to the company’s instruction and the credit card company goes after you, you can always sue your employer.

But that might not be the best thing if your company is going under anyways.