Legal Question in Credit and Debt Law in Florida

debt collection: a Florida company

In November 1997 and in the beginning of 1998 a Florida company guaranteed the promissory notes issued by its affiliate company registered in Jersey, U.K. Debt plus interest should be paid back in 3 month. At the end of this term parties agreed to extend the action of the notes ( it was a gentlemen agreement- no papers were signed). Borrower kept paying interest up to January 31, 2001. Creditor has all bank references and statements regarding these payments. At Jan 31, 2001 the Barrower informed the Creditor that it is unable to continue payments. The Jersey company is just an off-shore with a bank account (Creditor has info about all money coming to and from this account). Florida company merged in 2000 with another US company and in 2001 attracted a stratigic investor in an attempt to boost the business, but did not disclose the info about the a/m guarantee in both cases and did not show it in the financials. What a possible tactics to get debt and interest paid? How to recover cost of collection? Is it possible to sue the Chairman of Fl. company for fraud? Is it possible to freeze the Jersey account as soon as Creditor has info that some money are transfered to it?


Asked on 4/07/01, 1:13 am

1 Answer from Attorneys
Anthony Comparetto Comparetto Law Firm

Re: debt collection: a Florida company

Obviously you have a very complex problem. With the limited facts I would attack as follows: 1) I would try to attack the officers and directors and try to raise different types of breaches of duty. Raise the bar by putting their necks on the line personally. Attacking the Jersey U.K. account is often difficult due to the way they structure those accounts. Often offshore accounts are managed and directed by the offshore officers and directors and the laws of such countries are designed to protect them. Your situation is truely complex and you should proceed with caution. Good luck.

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Answered on 6/13/01, 9:00 pm


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