I just got $12k worth of debt dropped on me..... what's the best way to handle?

[mripguru]

Hello,

I've been dealing with a company that offers Internet solutions for businesses which I've been in a dispute with for the past few months (since December). Unfortunately, it seems they just got fed up and decided to send me a bill for the entire year worth of services (until next December), which totals $12k - the rest of my contract, to be paid ASAP.

The good part of this is that it has not been sent to collections as of yet nor has it hit my credit report (though I suspect they will do that soon enough).

Unfortunately, $12k is a bit out of my range at the moment and they're not really open to reason/negotiation.

Is there anything I can do to protect myself/my credit from this when it does show up?

[aces33]

With those facts you've just given... you might be stuck    i suggest you try to negotiate a payment plan every single day until they comply.

[mripguru]

Hi Aces33,

I had a feeling that might be the case..... but, they're playing hardball .

[aces33]

Not to be all in your business but what is the dispute about? And why do you feel you have to pay if you have a dispute with them?

[mripguru]

Hi Aces,

Without going into the whole long story - the issue stems from Hurricane Sandy and the companies inability to provide services due to their facilities being flooded as well as uncooperative building management which was trying to hinder restoration of services by the company - which as a result, I lost quite a bit of revenue from my customer base (I'm a small business owner) which in turn meant that I couldn't pay the vendor.

However - they wouldn't hear of this and just kept sending me bills, even after services were suspended (I moved on to greener pastures).

As for why I feel I have to pay -- I really don't - however, I don't want it to hurt my credit (both personal and business) either. So - it's more of out of necessity for my/my companies financial future (I've since LLC'd to protect myself against future incidents like that).

Is that a reasonable explanation to your query?

[aces33]

Well you dont to sound like a jerk and say a hurricane kept you from doing your job which in turn kept me from doing mine BUT that's exactly what happenned. You lost money and to add insult to it they want you to pay them for services they couldnt provide at that point in time.  Get a jump on it and write to the credit Bureaus that inaccurate information might be reported and you want it documented that you are disputing the future charges. After all it's a fact that you did nothing wrong here if this is the story.

[mripguru]

Hi Aces,

Indeed - I've already got that on my list of things to do today .

Though - it sounds like there's not a whole lot I can do except for pay what I can and see if I can cut a deal with the collections folks so it doesn't hit me TOO hard.

[aces33]

That's a way to go if the goal is for it not to end up on your report. GL

[mripguru]

Well - it's going to end up on the report one way or another - the question is how hard it's going to hit me.

[mripguru]

At this point - my only option is to manage the fallout.