How to Remove a Name From a Business Account

Save

Removing a name from a business account frees that person from personal responsibility for the account. People listed on business loans share responsibility for the debt, with creditors allowed to file lawsuits against everyone on the account if the debt isn't paid. The stakes are not nearly as high on joint business checking or savings accounts. However, people sharing joint business bank accounts are all liable for certain transactions such as overdrafts. Banks and creditors are generally unwilling to remove names from a business loan account while the debt is outstanding. It's to the bank's advantage to hold as many people responsible for the debt as possible.

  • Review business loans or credit accounts bearing the name of the person you wish removed. Contact the creditor to negotiate removal of a name from the account. To accomplish this, the bank must recognize you as a primary account holder or owner of the business. The bank may require additional collateral before removing the name or require the account paid in full.

  • Follow terms of the negotiated agreement to remove the name. Pay all or part of the balance or put up additional collateral such as real estate or a personal retirement savings account.

  • Call the bank and contact customer service to remove an authorized signer on a checking or savings account. Tell the bank you wish to remove a name from the account and follow instructions for following up in writing. Or visit a bank branch with the person to be removed from the account. Show identification as you complete the task with the help of a customer service representative.

References

Promoted By Zergnet

Comments

You May Also Like

Related Searches

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!