Personal debt- opening Business account

by Guacamole
(Morris Plains, NJ, USA)

Hi, I live in NJ. I have about $25,000 in personal debt. I have collection agencies calling me daily, but I do not plan I paying them back, because in about 2 years the debt will drop off my credit report.

My question is: I plan to open a business account (S-corp with an Employee ID Number). If the credit companies garnish/levy my accounts, can they also go after my business account, since the business tax ID number is not my social security number?!

Reply from DebtCollectionAnswers.com:

Just because your debts will come off your credit reports in two years doesn't mean you shouldn't try to resolve them. According to our sources, the statute of limitations for consumer debts in New Jersey is very long. Even if they are no longer on your credit reports, if the statute of limitations has not expired, you may be sued.

If your creditors were able to get judgments against you, those judgments would be reported for their own seven year time periods, and would really hurt your credit. In addition, they may be able to go after your assets to collect. We don't know whether trying to hide your assets through an S Corporation will work. You'll need to talk with an attorney. But we think it makes sense for you to try to find a strategy to resolve these debts. Given how old they are, you may be able to negotiate attractive settlements on them, for example.

You may want to listen to our
debt settlement podcast for more ideas.

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