Sole Proprietor Seeking Advice

[arcamp]

I am the owner of a small business in Alabama. I signed a contract with a hotel for a conference we put on, resulting in a $16,000 food and beverage bill. As a result of a contract gone bad (someone else was supposed to pay the bill as our co-sponsor and reniged) the bill is now mine to pay. We are not incorporated, so the liability lies with me. I made a couple of payments $2000 each on the account and then missed a payment (this whole conference has messed us up so badly, but it was a bad business decision that I will have to pay for and live with) and the hotel turned the account over to their attorneys in New Orleans. A private investigator called me talking about liability and asset investigations, taking pictures of my property and assets, pulling public records, etc, etc. I then called the attorney (who has never called or written me) and asked him what was up. I also told him that I pay my bills and will pay this bill, but that unfortunately, I do not have a lump sum of $14,000 nor anything I own worth that much. He told me that I am going to be charged with Theft of Service and that they will conduct and investigation and then litigate. I explained that I will gladly pay the bill, which I owe and my name in on the contract and that I was not trying to get out of paying, but that I really needed them to work with me to set up some arrangements. The attorney was pleasant, but very insistent that I pay all at one time (which I can not do) and then basically told me "Good Day." I am worried about a couple of things: 1. It sounds like some of what they plan on doing is going to interefere with my everyday business (in which case I will lose business and never be able to pay them their money). 2. Why didn't the attorney at least try to work some thing out with me to get the bill paid? I don't understand how even the courts could make me pay something that I do not have. 3. I have never been in a position like this before and am very scared and also unsure of my rights. I have contacted an attorney here for guidance but got anxious tonight (not wanting to wait for our meeting and her advice) and went on-line.

Help!

 

[JETX]

I commend you on your accepting this debt and attempting to take care of it.

First, this 'attorney' does not sound like a professional. Check him out using the lawyer locator at http://www.martindale.com
I will almost bet he is a 'collection agency' fraudulently representing himself as an attorney (violation of the FDCPA). And the 'guy at the next desk' is probably the 'investigator' going to take pictures, etc.
Regretfully, these are fairly common tactics by these bottom feeding collection agents.

Second, in my opinion, I don't believe a DA or judge would accept a theft of service charge for this civil matter. Especially with your making attempts to pay.

Finally, have you considered taking legal action against the original 'co-sponsor' of the conference? It sounds like you might have a fairly good case against him....

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Steve Halket
Judgment Recovery of Houston
[email protected]
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This is my PERSONAL OPINION and is not legal advice! Consult your local attorney for your specific situation and laws!