Finance & accounting

The company is bust - but corporate card bills live on

January 28, 2010: 2:05 PM ET

When a company goes under, employees can be stuck with the liability for their corporate credit cards.

Becky, Birmingham, Ala.
My company, an LLC, is insolvent and dissolving. No formal bankruptcy will be filed, and unsecured creditors will not be paid. I know there's potential for my credit card company to serve me with a lawsuit if I am unable to commit to a payoff plan. Can my employees also be held liable? In other words, can employees who charged company expenses on the corporate credit card be sued for the amount they charged on the card?

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