My husband and I had a business for 15 months with another individual. Our insurance agent was an idiot and had us buy workers comp together. The other guy had a claim on the insurance, ran up a bill, got paid by workers comp and etc... He also cleared $120,000 from the business that year. We cleared about $25,000. After we had closed the business our "payroll" - everyone worked as an independent contractor - was audited and the workers comp company hit us with a bill for $4000 that we didn't receive until after it had gone to collections. Our ex-partner is the reason the bill is so high so he is supposed to be paying it and has been sending checks for $100/month. I guess he and the collection agency had worked out a $500/month payment plan.
The long and short of this is that the collection agency wants at least $500 a month or they are going to sue us - we aren't in a position where we can deal with the bill right now, probably after tax time we would be able to pay about half of it - but that isn't right now. My question is - if we are sending them $100 a month (which I could do... I guess) can they really sue us?
Anybody have any ideas? I'm checking into our state laws as well - I think the company is just trying to intimidate us.
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