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erin3 · Mar 2, 2006, 08:37 PM

Sorry this is so lengthy.
I leased a business, when the lease ran out we were finacially unable to renew. We owed an enormous amount of money at the time (around $60,000). One of the suppliers we owed told me not to pay the debt to them because the contract we'd signed placed the responsibility of the debt on the owner of the company we'd leased from (he signed the contract as well). We owed about $30,000 to this one supplier. I didn't feel it was right to leave someone else with this sort of debt because of my failure and paid what I could over the course of the next year. About six months into the year ( I was making weekly payments) the supplier began sending me bills which included interest charges which were over double what I was making for payments. So, each month, despite my payments, my debt grew.
I wrote to the company and explained I could not pay more than what I currently paying and asked them to drop the interest charges. They responded by sending a note saying they would contact the business' current owner (the note was handwritten on top of another statement with the interest added again. I didn't see how this was an answer to my question. I attempted to call the company, but each time was only able to reach people's voicemail and not an actual person. I left messages several times with my home number, work number and email address. No one ever contacted me back.
I still continued to pay each week. At this point I had been paying for 14 months and the monthly statements were still showing my balance as getting larger and larger. I finally sent a check with a letter stating I would not make another payment until someone contacted me about my issue with the interest. After not hearing from anyone (and the check I sent with the letter having cleared the bank) I began calling again. As before, I couldn't reach a live person and only was able to leave voicemails that were again, not returned.
Two days ago ( this is four months since my last payment) I received my first statement since I had stopped paying and at the top was a handwritten message that simply said "waiting for court papers". I called them again the next morning and left another voicemail. This time I did get called back but all the guy said was he was calling me from his cell phone, didn't have good enough phone service to talk and would call me at 8AM the next morning. Well, I waited all day and he never called. I called him three times and left voicemails for him.
What am I supposed to do? I am not trying to "run away" from the debt, I want it paid and over with. I cannot afford to pay the remainder in one lump sum or I would have. I just don't want to make payments for the rest of my life only to watch the balance continue to grow. Why would they not make an attempt to even speak to me? Do I continue to call and write? Or do I just leave it alone and wait for a court date? It seems bizarre to take me to court when I am willing to pay. Is there anything I should do to prepare myself before going to court? I really cannot afford an attorney or even to miss work. This debt hasn't shown up on my credit report yet as being owed or late. I just can't understand why they wouldn't want to even allow me five minutes to talk to them about the matter.

CaptainForest · Mar 3, 2006, 12:08 AM

Hold off until your court date.

Have you considered bankruptcy?

Fr_Chuck · Mar 3, 2006, 10:33 AM

First I can't image a debt that the person you leased the business from would be responsbile for, I really believe that should be looked into also.

But beyond that, 60,000 is not a large business debt ( I could tell you about business debt about 20 times that amount)

Several things, first you need to work out in writing a payment plan, not letting them add interst that they want, but only what the agreement to the debt allows. If they won't do that, and you can't pay them as they want, you have no option but to go to court, The judge can order a garnishment of your pay to about 25 percent of your check.

erin3 · Mar 3, 2006, 08:04 PM

I have no reason to go through bankruptcy. I have paid all but $10,000 of the debt back. I believe that has shown an attempt on my part to pay. Which is why I can't understand why they will not work with me.
As for the contract... the original was signed by a business owner. A clause was added to include my lease. In it is stated any debt left at the end of my lease would become his ( the owners ) resposibility. His name is actually on all the bills as well. However, I have been the only one repaying them and the only one threatened with court. I only want the interested removed from the bill and to avoid court costs. Is their nothing that I can do at this point?