Expert: Terry Leeders - 8/8/2008

Question
I owned a business and was forced to close due to the economy.  My husband and I filed chapter 7 and included all of our personal and business debt together in the filing.  Our case was discharged on June 23, 2008.  On June 30, I recieved a collections letter (to my home) regarding the phone bill from the business.  I called my lawyer and thought all was taken care of.  July 30 I recieved another letter from them that states they will sue for assets and bank accounts.  The business is closed, all assets were auctioned (assests went back due to a secured loan) I got nothing.  Bank accounts are closed.  Phone company from the business was listed (along with all the business debt and personel debt) in the bankruptcy and discharged.  What should I do with this.  The collection agency is saying that since the business itself did not file, to bad for me.

Answer
The company cannot collect from you personally if they were listed in the case, give them a copy of the discharge.  Now, they can still collect against the company, as I assume the corporation didn't file a separate bankruptcy.  You need to follow the liquidation steps in your state when dissolving a corporation.