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Business Debt/Dissolve corp with debts

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Expert: - 11/30/2009


Question
In NY I have a 6mth old corp that i was going to use but didn't(no income) although I did get a a corporate celluar contract with 5 lines(don't get used),if I dissolve or simply not pay the cell company what implications would I face if I end up owing them $2000 and dissolving,and what would be better to do,I do not plan on paying for the service because of no money due to the failed venture. Also the contract wasn't personally guaranteed and i am the president. Would they just put the company that gets dissolved into collections?and where would that leave me?

Answer
Robert:
Thank you for your inquiry. Based on your description of your scenario, it would seem the corporation is inactive and has no assets. As for the incurred costs, you had best make absolutely sure that no personal guarantees were placed on your account if you have no ability to pay through the corp. Generally speaking it is best to keep a corporation "intact" for at least a couple of years after it goes "out of business" as that corporate veil is a safety net for would be creditors to collect only upon the company (first)and not solely its officers. The statute for collections in NY on monies owing for contract accounts is 3 years. So your creditors have up to three years to try to collect on a defaulted contract or account. You can always offer a settlement if need be. Hope you found this answer helpful, if so please take a moment to provide a positive rating.

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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