Confusing Situation with Collector

Howdy. So I've finally cleaned up all my credit, I've got a new mortgage and everything's fine...

Until just recently when a bonehead move I made back in 2002 is biting me. Long story short, I sold my business to an employee but we never legally transferred ownership of the business from my corporation to his (he paid half down, half on notes). I figured at the time that he was going to keep paying all the bills and when the lease was up in a couple of years, I'd be able to get out of the situation at that time. Of course he went downhill after a year or so and stopped paying some of his bills. He then sold the business to someone else, but since I technically still owned the business, the new buyers had to come to me to close the sale. Long story short, I have been paid almost everything I was owed. He skipped out on me but I found him (to his surprise) and convinced him he needed to make good on our deal. To this day he's paying me off at $100/month and only owes me about $800 now.

OK, so probably a year ago I get a call from the utility company, PSEG, about an unpaid bill for $2200. I realize what he had done and told them that while my company is on the bill that I had sold the business, and that it was a corporate debt anyway. I didn't believe they could come after me for a corporation's debt, so I didn't hear back much from them.

Now more recently it seems they sold the debt off to Asset Acceptance LLC and they are looking for payment of $2700. I've ignored them to date but am starting to think I should ask for verification. Nothing is on my credit report, I believe, because this is a corporate debt and I must have signed up for utility service under the corporate name and tax ID number (it was 1998 so I don't remember or have the records).

I called PSEG and asked them to call up my old account information, and they had no record of it. So the question is whether it is best to just ignore the CA figuring they are trawling for suckers, or is a verification letter in order? I tend to hesitate with the verification letter because it shows I received their letters and puts me into "the process." On the other hand I've learned it isn't good to just ignore stuff like this.

BTW, I believe I can get the guy who's debt this really is to make good on it, but it will probably take 2 years for him to pay it off. I do have some documentation (somewhere) that shows I sold the business to him in 2002, well before he stopped paying the bills. Also the SOL is 6 years I believe, and we aren't quite there yet. I don't know the last date of default on payments to the utility.

Thanks for any comments!
bushka

 

But if they are contacting me personally rather than the (defunct) corporation it seems the FDCPA would apply for me. If it isn't my debt personally, then it's over. However, then there is reality, where it seems like validation is whatever they want it to be and I have to spend the time and money defending it in court if they move ahead.

I guess I'm already in "the system" since I am getting letters, but since they seem to have no standing I thought in this case it might be better to ignore them. I dunno.

 

Wow! This board is really slow. Is it just the holidays, or are people no longer getting into debt problems?

 

Well all the above is certainly true. Since the utility company has sold off this debt already, I'm even considering to call them and ask about my liability for my current business, as in what my personal liability is for my current business utility account.

Thanks!

 

So now it's July 09 and I received another letter from Asset Acceptance CA and they are offering to settle for $1800, of course. I called them to ask what the bill was about and told them I had no knowledge of a personal debt. They said I have to fill out a police report and fax it to them. I could fill one out, but don't want to lie to the police. I could tell them my name was used by the new owner but since he is willing to pay I don't want to get him in trouble with the law. I'm still trying to figure out whether I legally owe this debt. I guess the advice I was given last time is best - talk to a lawyer. It seems that the strategy of ignoring it won't work. It will probably end up as a judgment even if I don't owe it legally.

bushka