How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 116716
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
Type Your Business Law Question Here...
Law Educator, Esq. is online now
A new question is answered every 9 seconds

A company claiming to have bought a debt from another company

Resolved Question:

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.

I hope you found my answer helpful, please click on the GREEN ACCEPT button above for my answer. This is necessary for me to be paid for my work and so that I can get credit for assisting you. Your question will not close, and you will still have the opportunity to follow-up if needed. Leaving a bonus and positive feedback is not required, but doing so is certainly appreciated!

If you have additional questions, please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Please consider that I am answering the question or question that is posed in your posting based upon my reading of your post and sometimes misunderstandings can occur. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.

Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.

There can also be a delay of an hour or more in between my answers because I may be helping other customers or taking a break.

You can always request me through my profile at or beginning your question with “For PaulMJD…”

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.
Law Educator, Esq. and 3 other Business Law Specialists are ready to help you

Related Business Law Questions