goingnuts

Corporate bill on personal report

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My wife and I had a business that failed in 2008 which was filed as a coporation. Long story short it left us in financial ruin and we are slowly digging our way out and repairing our credit. We are trying to fight a collection agency that is trying to collect on a "bill". The amount in question was NOT from a business credit card, corporate account, or loan. The original bill was from an alarm company which was paid in full on a monthly basis. When we closed the doors, we got slammed with this $2000 "early terminiation fee". It is listed on my wifes personal credit report and is hindering us from getting a home loan. Do we have any recourse? I refuse to pay since no services were rendered and it was never a debt to begin with. We've already paid and made good on other debt but this is just unreasonable. Thank you for any suggestions that anyone might have.

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Have you tried disputing with the CRA's and sending them proof that the bill was paid in full?

If you've already done that I would also start your complaints to the BBB, FTC, and the Attorney General in the state where the collection company does business.

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You need a copy of the contract you signed with the alarm company. Look for any wording that places you in a position to Personally Guarantee the money if the business goes under.

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Note to anyone that owns there own business:

never ever sign a personal guarantee for your business.

Virtually every vendor that we do business with has it in there credit application for the officers to supply a social security number, home address and sign a personal guarantee.

The work around is to draft a cover letter to all future vendors and note the following;

1. state in your cover letter that your corporate bylaws specifically state that no officer of the company can sign a personal guarantee for the company. Any officer that does this is to be terminated emmediately.

2. State that your corporate bylaws do not allow officers to provide there home address, etc.. due to Identity Theft and Competitive espionage.

Our cover letter incorporates these two lines in some pretty legal terminology and in the last five or six years not one supplier has come back to us and denied us credit.

Just remember the reason you get incorporated is to protect your personal assists from the company going under.

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