Past Due Billls

[ShaneCombs]

Florida

I own an ad agency that is a C-corp. After many years with no issues, this year we have several past due bills from mistakes with our accounting. Twice we forgot to send a check to a vendor even though we collected from the client. One is worth $1800 for a and another $2600, both from billboard companies. Furthermore, we switched mobile phone companies from Verizon to Tmobile. The last 2 months of our contract, Verizon didn't auto debit our account like usual, so we never paid ($500 total). Also, we followed Tmobiles instructions for switching but got hit with a cancel fee with Verizon for $500. In total we have around $5400 in past due bills. We just lost our 2 biggest accounts, so we are barely breaking even, let alone paying back these past dues. What are my options? Can they actually ever collect? Will it affect just our business credit, but not personal credit or assests? Thank you.

 

[TigerD]

Impossible to answer.

If you paid as little attention to the details when setting up your corporation and those accounts as you did when you "forgot" to pay your bills, they might be able to come after you personally.

DC

 

[quincy]

Florida

I own an ad agency that is a C-corp. After many years with no issues, this year we have several past due bills from mistakes with our accounting. Twice we forgot to send a check to a vendor even though we collected from the client. One is worth $1800 for a and another $2600, both from billboard companies. Furthermore, we switched mobile phone companies from Verizon to Tmobile. The last 2 months of our contract, Verizon didn't auto debit our account like usual, so we never paid ($500 total). Also, we followed Tmobiles instructions for switching but got hit with a cancel fee with Verizon for $500. In total we have around $5400 in past due bills. We just lost our 2 biggest accounts, so we are barely breaking even, let alone paying back these past dues. What are my options? Can they actually ever collect? Will it affect just our business credit, but not personal credit or assests? Thank you.

Does your ad agency have its own accountant or are you/were you responsible for the ad agency's sad bookkeeping?

Yes, debts that are owed are (generally) collectable. Yes, as DC said, it could be possible that your personal assets are at risk.

One option is to have all facts reviewed by a professional in your area, who can advise you on how best to get out of the mess you seem to have created.