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CA says i'm not a guarantor but debt is on my CR. What to do?


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Hello Community;


Last month I received a letter addressed to my dissolved business stating that the unpaid balance due on our business LOC had been placed with them for immediate collection. A letter I had been expecting but very slow in receiving. CA had been hired by a JDB that had purchased from BOA. I waited on replying as it was not addressed to me personally.


Last week the debt appeared on my CR under JDB's name and about the same time the biz received a second letter offering a settlement. I called CA ready to wheel and deal but representative only thanked me for the call but said that I was not the guarantor and would I give them a current contact number for my business partner who was. Stunned I replied that I had had no contact with him for 2 years and I'm sorry. CA said that he would be served a suit and probably not know it so I should contact him.


I'm a bit astounded by this circumstance and don't quite know what to do. Any advice out there?


Thanks - G4B


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I would also point out to my former partner the exact language she used about being sued and "not knowing it."


That's called sewer service, and it's not legal.


It isn't necessarily sewer service.  If they tack and nail at the former business location or the court allows alternate service via publication it would be legal.  There are service methods that are perfectly legal yet the defendant still has no knowledge of the suit.  

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Thanks all for your responses but found some information that has made this situation even stranger.


Turns out my partner had settled with BOA on the original debt almost a year ago. Has the terms in writing. Seems to me when the remainder of the unpaid debt went to the CA that he was still seen as a guarantor even though he paid up. Thinking JDB does not have their ducks in a row, imagine that! I did not validate the debt (which is my usual protocol) so I do not have copies of what their actually looking at. I'm past 30 days so apprehensive on approaching them with validation. In closing I'm thinking that even if they did file suit against him he'd just have to show the original settlement agreement and they'd be USCWOAP and paid out for a lawyer at that. And as for myself, do I just sit still and see what happens? And why is my SS# involved if I'm not a guarantor? A strange conundrum indeed.



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If they told you that they couldn't talk to you because you awere not a guarantor, I would send them an ITS letter concerning the placement of the trade line on your CR.  I am assuming, of course, that the business entity was a corporation, LLC or similar veiled entity.  If it was a simple partnership or assumed name, you may very well have liability.

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