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Business Debt/commercial collection activity

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Expert: - 7/29/2008


Question
I rented office furniture for my corporation that never launched. Furniture company hired a collection agency whom states that i breached contract and I owe the lease term of contract in the amount of $69,000. According to lease it indicate even if i return furniture company will still be liable for remaining lease term. I don't want to return the furniture and find that i still owe the money. My lease stipulates that  i will remain liable for the remaining of my 3 year lease term. I am not a personal guarantor.  It would be considered a business to business debt. My company is not doing well and has cease operations although it has not been dissolved. If company pursue litigation and obtain judgment against my company Can they still hold me personally responsible. I believe they perform a asset and liability investigation on the company already.  They even contacted my family trying to locate me. I tried speaking to them they want the money and furniture back. What can they do?

Answer
Nathalie,
You should look at your lease and/or contract and also visit an attorney and bring your business corporation paperwork along with this lease or contract.  Depending on your state laws and your lease or contract, you may be liable for the remaining lease term.  Your paperwork will also determine return-ability of the furniture and if you would be credited any of the money based on the return or if a return is even an option. If your business has ceased operations, there may be other factors depending on your specific state laws. If you cannot pay for the furniture and returning it is an option to help you have less of a debt, you may want to consider that.
Good luck to you!

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Michelle Dunn

Expertise

As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals, and winner of the Business Excellence award, I can answer any questions about debt, debt collection, improving business credit, creating a credit policy, enforcing a credit policy and collecting on past due accounts. I can also answer questions in regards to starting a debt collection agency since I have been a bill collector for over 24 years, started and ran my own collection agency for 8 years, and maintain my 12 year old Credit & Collections Association for members of the credit & debt collection industry. I am also the author of the popular and award winning book "Starting a Collection Agency, how to make money collecting money" now on it's 3rd edition. This book has won a the Writers Digest self published award as well as the New York Book Festival Award. I am a repeat contributor to the Wall Street Journal, and have been featured on NPR, CNN, as well as many other national radio and television programs. I have also been featured in national publications such as the Wall Street Journal, Forbes, Smart Money, MSNBC and much more. I have 17 published books to my name and am an accomplished speaker and consultant. I currently write 9 columns for newspapers, magazines and online portals worldwide.

Experience

I have over 24 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the founder & owner of my Credit & Collections Association that I founded in 1998. www.credit-and-collections.com

Organizations
My Credit & Collections Association, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 11 years. I am a member of many writing groups as well as my local Women Inspiring Women chapter. I am a member of Know More Media as an expert for their blog on business credit.

Publications
Business NH Magazine, Smart Money Magazine, MSNBC, CNN, Forbes.com, The Wall Street Journal, Home Business Magazine, Entrepreneur Magazine and website, many books, newspapers and television programs as well.

Education/Credentials
I have written 17 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook. My newest book is being published by John Wiley & Sons in May titled, The Guide to Getting Paid, how to weed out bad paying customers, collect on past due balances and avoid bad debt. This book is also being sold to many colleges as a text book.

Awards and Honors
My book Starting a Collection Agency, how to make money collecting money won an award from Writers Digest and the 2007 New York Book Festival in the "How to" category. I have won 2 awards from Dun & Bradstreet and Governor Jean Shaheen. I was nominated as one of the Top 5 Women in Collections twice as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals by my peers.

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