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Business Debt/Can a collection agency report negative info on a personal credit report for a corporate account?

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Expert: - 1/28/2009


Question
Can a collection agency report negative information on a personal credit report for a corporate account? I opened an account with DHL under my corporate name using my tax id number.  After being in business for a period of time I was forced to closed my doors.  My corporation has since been closed/forfeited.  The only outstanding debt that I had was with DHL because I paid off all my other vendors.  I have been recieving collection notices from different agency regarding my corporation. The most recent collection notice was from a Collection Agency/Law Offices regarding DHL vs. my corporation?  Will they or can they attach this debt to my personal credit?

Answer
Nick:
Thank you for your question. I regret that you were unable to maintain a viable business operation. To answer your question based on the information you have provided would be difficult as there are many issues that come in to play regarding collections efforts including:
1. When was the last payment on account made? There is a Statute of Limitations for collections in most States, and that is usually between 4-6 years of the last payment on the account.
2. Was there a personal guarantee made by you? If so, the creditor and or collection agencies may opt to exercise pursuing you for payment or even reporting this to your personal. This costs money for them to do, and if proven erroneous can be removed.
3. If as you say this is a law firm, but they have not sent you a summons or in any way indicated a lawsuit, or judgment is pending, their attempt may be to simply collect. If the firm is in your state of residence, you may benefit from consulting with an attorney.
I do recommend you attempt to validate the debt, or dispute it prior to paying or offering to pay as the statute may be nearing expiration. Once a collector is notified in writing, this will allow about 30 days before anyone can attempt collections on the account. See the following link for more details. http://www.fair-debt-collection.com/Disputing_Collections/stopping-debt-collecto...

If the debt is valid, you can always offer up a smaller settlement amount and resolve this swiftly. I hope this proves helpful, and if so, please feel free to provide a follow up comment or a positive rating on my answer so others can learn as well.

Respectfully,

Christine Janklow

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Christine Janklow

Expertise

As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.

Experience

My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.

Organizations
Provisors;Turnaround Management Association; Los Angeles area

Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."

Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising

Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.

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