Legal Question in Construction Law in California

i have a collection agency that is comming after me instead of my corporation. I used his clients equiptment on a job and used an open check to secure the rental when the equiptment was returned they let me know how much the charge was I told them not to use the check that i will bring in cash for the rental they deposited the check and there wasnt enough in the account to cover the check so it bounced and I stopped payment on the check to stop getting charged for the bounced check I contacted them and told them not to put the check in that i will bring in payment and I have not been paid from the general contractor as soon as I get payment from them I will bring in the payment. the collection agent they hired called me and told me he wouldnt be going after the corp. but after me personally.he has filed the papers with the court and is sending the sherrifs with a writ attachment. what are my options. can I go after the collection company?


Asked on 1/03/11, 4:02 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Battling with a collection agency over whether a sum is due personally or from your closely-held corporation is, unfortunately, not going to get you very far. Have the corporation pay the bill. If you had a bona fide dispute over the amount of the bill, that'd be a different matter. As it is, your corporation owes money, and the technicality over the difference between the corporation and you personally will either be fixed by the creditor amending its complaint or by asserting that use of a personal check made you a guarantor. Technically, you personally violated the checking laws by stopping payment without a bona fide reason - there simply wasn't enough money in the account to cover the check - and that alone would give the creditor reason to come after you. Right now, you need to pay up and get the suit dismissed, or, if you have a bona fide dispute over the amount, dig in and prepare to defend.

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Answered on 1/08/11, 4:45 pm


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