AboutMichelle Dunn Expertise As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals of 2007, and winner of the 2007 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 21 years, started and ran my own collection agency for 8 years, and maintain my 11 year old American 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 2007 New York Book Festival Award.
I am a repeat contributor to the Wall Street Journal, and have been featured on NPR 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 12 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 21 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the Executive Director of my American Credit & Collections Association that I founded in 1998. www.credit-and-collections.com
Organizations The American Credit & Collections Association LLC, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 9 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 12 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook.
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 in 2007 as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals for 2007.
My company lost it's two largest clients and I have let the company dissolve,
per my accountants advice, by not renewing my annual report. I had 2
business credit cards and two vendor accounts that weren't paid. I was an S-
Corporation. Both the vendors and the credit card companies have sent me
collection notices. I have informed them the company is no longer operating
and conducting business and all vendor and bank accounts have been closed.
I realize the business accounts may be personally guaranteed, I'm not sure,
but I know the vendors are not. What should I do about these collectors, they
don't seem to understand the message. I have sent them responses via
certified mail so I know they have received my response, but they seem to
simply ignore it and continue to send me threatening notices.
What should I do?
Thanks
Steve
ANSWER: Steve,
It sounds like you may very well be responsible for these debts. Since your accountant advised you to let your company dissolve by not renewing your annual report, you should contact the accountant and let them know this is happening and ask how to handle this. Normally you would have let your vendors and suppliers know the company was being dissolved other than not renewing your annual report. You also mentioned that you don't know if the accounts are personally guaranteed, you should find out as soon as possible because if they are you are responsible for those debts.
---------- FOLLOW-UP ----------
QUESTION: The 2 business credit card accounts have been handled because of personal guarantees. The vendor accounts are not guaranteed and at least one of them was notified that I was going out of business. There is no business, there is no income, there are no accounts. I have requested the collectors provide me evidence of personal liability on these vendor accounts on 3 separate occasions and they have simply ignored my request. Is this not a violation of the Fair debt collections act? They simply ignore me and continue to send letters saying they are going to get a judgment. A judgment against what? The company doesn't exist, there is no personal guarantee and the company was an s-corporation. Aren't I protected by the corporate vail at the very least?
Thank you for your consideration and I look forward to your follow up response.
Steve
Answer If you requested verification of the debts within 30 days from being contacted by the collection agency and they did not provide it, you should talk to an attorney. Show him the letters you received from that agency along with your proof of requesting the backup paperwork and he can send a letter to them. Once they receive a letter from your attorney they can only correspond with the attorney and cannot contact you at all, by phone or mail.
