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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 110521
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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A company claiming to have bought a debt from another company

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A company claiming to have bought a debt from another company is calling and sending letters for payment. I owned and closed a business LLC. They say that I personally guaranteed the lease although it was for the business. What can they do. I signed the contract in NC but they say the SOL is from ILL. which I'm not really sure of. The business closed Dec. 2005
Submitted: 5 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 5 years ago.
You need to read the lease, if it was signed in NC, then generally NC law applies, not IL law UNLESS the lease states that IL law applied. Second, you need to check to see what you actually signed, as a member of the LLC only or as a personal guarantor. These are two things that must be established. Thus, you need to send the collector a letter saying that pursuant to the Fair Debt Collection Practices Act you are demanding proof that the debt is yours, including a copy of the contract signed by you and proof that they have rights to collect the debt. Tell them that under NC law the debt is time barred. Also tell them that if they do not provide proof in 30 days the debt is considered invalid and you will sue them for damages under the FDCPA for up to $1000 per violation plus attorney's fees and you will file a complaint with the Federal Trade Commission as well.

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Customer: replied 5 years ago.
If I write the letter and they do send me a lawsuit from Ill what can I do from far away.
Expert:  Law Educator, Esq. replied 5 years ago.
Depending on what the contract says about jurisdiction of course, if they sue you in IL for something that took place in NC, you file a motion to dismiss for lack of jurisdiction/improper jurisdiction and state that the jurisdiction is in NC where the real property is located. If the contract did state that IL was jurisdiction then you will need an attorney in IL to fight them.
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