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CalAttorney2, Attorney
Category: Legal
Satisfied Customers: 10244
Experience:  Civil litigation attorney for individuals and businesses.
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i am a buniess owner in jacksonville fl i have a collection

Customer Question

i am a buniess owner in jacksonville fl i have a collection i had a client from a payday loan company that sign a contract with me to collected him debt for him all monies have not been paid to him due to me having to close down he has proof of money that is owed what legal can be down to me any crimial charge i can face
Submitted: 4 years ago.
Category: Legal
Expert:  CalAttorney2 replied 4 years ago.
Dear Customer,

Thank you for choosing Just Answer. I would like to assist you with your legal question.

You do not provide information on how your business was structured (limited liability/corporation/sole proprietorship, etc.), but I can provide you with some general information that should be of assistance.

First, there can be no criminal action due to your failure to pay a debt. Absent fraud (embezzlement, etc.) there is no crime for a failure to pay a debt as we do not use our criminal justice system to enforce debt collections.

Second, if the business was a limited liability company, or a corporation, and the collections contract was with the company alone (you did not sign as a personal guarantor or in any other capacity than on behalf of the company), the creditor may get a judgment against the business, but it will be empty as the business has no assets, and you are shielded from liability due to the business structure.

Third, if the business was a sole proprietorship or some other form of business without limited liability protection, the creditor may pursue a civil lawsuit against you to enforce the terms of the contract he had with you, and if successful (you may have affirmative defenses, and the contract may not support a recovery), he can get a judgment against you personally, at which point he can collect against your income, assets, bank accounts, real property, etc. to fulfill the judgment. (This takes time).

I hope that my answer was of assistance to you. My goal is to provide you with excellent service – if you feel you have gotten anything less, please reply back, I am happy to address follow-up questions. Please remember to rate my service once you have all the information you need. Thank you for your business!