Is it advisable to send a DV to CA's or Attorneys for business debt?

[aimhighlow]

It is recommended for personal debt but what about business debt? Same or similar rules apply?

Does anyone have any links that talk more about DV'ing business debts?


Thank you in advance!

[frogger]

Is your business debt with the original creditor or has it gone to a collection agency. What is your business status? Corporate or not?

[aimhighlow]

Is your business debt with the original creditor or has it gone to a collection agency. What is your business status? Corporate or not?

Sorry for the late reply.

Frogger, my business debt would be with the collection agency if I were to send a DV.

My business status is that it is only technically currently active. It is an s-corporation. I am planning to file for BK Ch 7 later on this year. I only want to send out DV's to deter lawsuits, or give me more ammunition so if worst case my veil is pierced, I don't want to lose my car which is exempt under BK.

Everything I have researched about DV's seems to only apply to personal accounts so I am not sure what to do about business accounts.

[frogger]

If your business is only "technically" active, then don't worry about it from the business point of view. Go ahead and send out the DV, but everyone knows that this is nothing more than an attempt to buy time.

Disconnect your business line, or change the number if necessary. They will continue to contact you personally, so send them a cease and desist letter. The DV is not going to deter any lawsuits, it will at most, slow them down a week or two if they intend to sue.

As to your corporate veil being pierced, unless your balances are huge, unless you have some fraud going on, unless there are corporate damages that could be placed on you personally, no one really cares.

You're going to file bk anyway, so don't worry about it too much. You probably will want to file a bk on the s-corp as well, even though it will not discharge. Do find a competent bk attorney that has corporate experience.

Most don't!