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boost4age
02-23-2010, 04:10 AM
i had a contract with a telecom company. i had to close my business cause it was make enough money anymore so i let the telecom company know and they sent me a final bill which got paid. Then a few months later after all paper work is done and business closed a lawyer representing them calls me and says i owe a balance of $2,000 that was on a revised final bill that was sent out.

The business was located in florida and was a llc can they put that on my credit or hold me responsible for that cause i signed the contract on behalf of my company?

Steve B
02-23-2010, 04:33 AM
What type of legal entity was your company?

Is the $2,000 balance accurate?

Business Attorney
02-23-2010, 07:22 AM
You should ask for copies of all the paperwork and demand an explanation of why they are trying to hold you personally liable for the debt of your LLC. Did you sign a personal guarantee?

Several years ago, the local phone company came after a client of mine who had been president of a defunct company, but who had no shares in the business. They went so far as to file a lawsuit against him. The contract was a pre-printed phone company form with blanks for the name of the subscriber, the date and a signature. He duly inserted the name of his company as the subscriber but just signed the contract "John Smith" (not "Defunct Company, by John Smith, President" or even "by John Smith, President").

Their argument was that by signing in his own name, he became liable. I think that was a weak argument, and we ultimately got him off the hook, but it shows the extent that a phone company (or at least their collection attorneys or collection agencies) will go to collect balances due for phone services.

It is also a good example of why anyone who signs any document on behalf of a company or another person should always clearly indicate the capacity in which he signing. Even a letter or email can end up being a contract, so developing a pattern of indicating your corporate position on correspondence may be important some day.

boost4age
02-23-2010, 09:48 AM
Steve B
I dont know if that amount is balance accurate. My thing is how can you send a revised final bill a month later? if the final bill was paid and the account was closed how can you do that?

Business Attorney
Well the thing is that once everything was closed and confirmed close all documents was destroyed. I may have given my legal consultant some of it but at the time i was told that because the company was a llc they could not come after any of my personal assets. They tried to contact the lawyer in august but never got in contact with them, then i get a phone call this past friday and someone asking me would i like to settle my debt for $50. I told them i dont have debt i'm not liable for debt from that company then they hung up. May will make a year of closing the company.