Expert: Ray A Miller - 8/19/2010

Question
QUESTION: Our old boss is threatening to send us to
collections for royalties. We talked to a
lawyer who said because of certain issues
we do not need to pay him any.

What is required of him to send us to
collections? Will he mess up our credit? Do
we need to worry?

ANSWER: He will have to have proof of the debt and be able to validate it.  If he does, dispute the debt with the credit reporting agencies.

The first thing that comes to mind is do you have a contract with him and if so, does the contract say you owe him monies.

Thank you for your question and I hope you find this information helpful.

---------- FOLLOW-UP ----------

QUESTION: There was a contract that stated we pay him royalties for his resources we access for our couples. as soon as we resigned, (Because he wanted to make himself a church and have us tithe to him), he pulled our resources and started to tell our clients (Who had a contract with us as individulas) that they had to pay him and he was to do their weddings. their is no contract saying we owe money to him except that we pay him royalties for resources.

Answer
Since you have resigned, you are not using the resources.  Also, it seems to me that he would have to sue you to prove that you own him anything.  If the court says you own him then you would have something to worry about.

It sounds like you are in the clear.