How Can We Keep an Old Business Debt From Ruining Our Credit...?

Question

In 1999, we opened a business in the US and by the time 2000 rolled around we were basically bankrupt. We closed the business and moved back to our home state. The sales taxes due for the business was not paid in due manner & we owed nearly 2,000. We made several attempts to set up payments with that state & were told by different people that it had to be paid in lump sum. In the meantime, the total was gathering interest and penalty. Three years later were able, and paid the state the business tax we owed, plus the penalty. (not interest) We contacted a lawyer who suggested we write a letter of abadement (sp) & enter our plea in the letter to be free of the interest. The state cashed the cashiers check but we never heard back from them. We called after several weeks and were told we still owed the interest, and that they were compliing interest upon the interest. Should we just forget trying to work with them, include a letter in my husbands credit report, & wait for it to "fall off"?

Answer 1

You should contact a lawyer in the state where the interest is owed and ask for help.

The other alternative is to contact the tax department of that state and ask to speak with someone in charge. Try to speak with a lawyer on staff there and discuss your plight.

If all else fails, contact a congressperson of that state and ask for him/her to intervene to help you. I have often seen this work and it doesn't hurt to try. They will field your calls, believe it or not. If this doesn't work, try a congressperson in your state.

Good luck.