Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Good evening. Let's see if I can assist you this evening.
So, you had a debt for your business. Is or was the debt in your personal name or have a personal guarantee? Or was it in the name of your company only?
Also, you reference the debt as being past due and turned over to an attorney for collection, but also mention a "debt buyer".
Is the attorney attempting to collect on behalf of a different creditor than who you originally had the line of credit with?
OK, so the debt is now owned by a third party, which does put them into the definition of debt collector. However, the attorney does not fall under that definition. Mass law defines these parties in Section 24 of Title 15, Chapter 93 of Massachusetts General Laws.
So your question is whether or not they are required to follow the collection laws of your state and the FDCPA if it is a business debt, correct? If that is your question, and based on the facts you've given (that you were operating under your own name with a d/b/a), it does not appear to have a bearing on this matter as you are personally liable for the debt - so any collection action against you would be regulated under state law and FDCPA regarding consumers - because you are a consumer. The qualification is not the type of debt, I get that the debt is business debt, but the type of borrower.
If you believe you have a defense to the collection of the debt, I encourage you to consult with an attorney licensed in your state who is familiar with Fair Debt Collection practice and potentially debt settlement.
If I can be of further assistance, please let me know. Otherwise, please remember to click on the green "accept" button so I can receive proper credit and compensation for my assistance.
Thank you for the opportunity to assist you. Best of luck to you!
I do believe that it is consumer debt if you were simply a person "doing business as" a business. I also believe that, based on your facts, the debt buyer is a "debt collector" under Mass laws. The only "wild card" here is not knowing which state you reside in...which is not included in your original question.
Defendant’s Answer to Complaint
Current Answer to Complaint is being filed with Clerk of this court. However Defendant has received “Counsel of Plaintiff’s emergency request to withdraw” Therefore not informing defendant on who is now current counsel for Plaintiff.
Allegation 1 “FACTS” 3: Admit
Allegation 2 “FACTS” 4: Denied Mr. XXXX has not owned or operated XXXXXXX since 01/01/2008
Allegation 3 “FACTS” 5: Denied Defendant lacks knowledge about the truth and therefore denies allegations contained in “Fact 5”, Plaintiff has failed to provide Defendant with any kind of account numbers or documentation for alleged debt.
Allegation 4 “FACTS” 6: Denied: The request calls for admission of matter defendant has denied and thus it is improper.
Allegation 5 “FACTS” 7: Defendant denies the allegations contained in Fact 7 as there is not, nor has there ever been any agreement, written, oral or implied with the Plaintiff and Defendant.
Allegation 6 “FACTS’ 8: This request calls for admission of matter defendant has denied and thus it is improper FUTHERMORE, Defendant DENIES every other allegation not previously admitted, denied or controverted.
AS AND FOR AFFIRMATIVE DEFENSES
WHEREFORE, the defendant ask the Court for Judgment: A dismissing the complaint herein with prejudice
OK. Good job on your call to the Attorney General of your state. Then, yes, my answer stands.
Best of luck to you!
Please let me know if I can be of further assistance in the future!
While I can't give legal advice, only legal information, I can say that, not having seen the complaint, the answer looks very thorough. Best of luck!
You should be able to amend your answer if necessary.
Then there may be laws in your state that change the nature of the debt depending on what the borrower does with it. However, I am not aware of such a law. Generally the debt is obtained by a person or a business, and its nature is determined by that.
My question for you is why you believe this to be significant; their being registered or not. Perhaps that will allow me to assist you further.
Unfortunately, we're now venturing into the legal advice arena, which I am not allowed to give under the rules of the site.
However, one last thought of legal information is that it is possible to point out to the judge that they can't have it both ways. Unless you were a personal guarantee on the loan, they cannot sue a person if they claim it to be a business debt, for which they don't have to be licensed/registered with the state.
I would encourage you to seek the advice of an attorney licensed in your state. There may be legal arguments that could be made in your case, specifically as they pertain to the lack of licensing/registration and your capacity as a personal guarantee vs a business.
Any further information I could provide would be in the form of legal advice and I'm quite sorry I'm not permitted to give legal advice here.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).