Business gone under

[dinkado]

What is the name of your state (only U.S. law)?
CA
My web design business has gone under due to lack of clients this year. I have a creditor that I am unable to pay and need to know what my options are.
The creditor is an online advertising company. I do not remember agreeing to this but they have an audio tape.
I offered to pay them $10 a month but they laughed and said that would not be enough. I found out yesterday I am being charged late charges for each month it is past due. The balance at the beginning was 479.00 it is now 513.00.
I am panicked, I have no money left from the business, I have no way to pay this creditor, and they call at least once a week wanting to know when I am going to make a payment.
It is a sole proprietorship and I don't own anything. No house, no car, no property. I have already sold everything of value that I have. There is nothing left. What can I do?What is the name of your state (only U.S. law)?

 

[Some Random Guy]

You either pay or wait to be sued. Focus on getting a good job and some income and put this debt off until then.

So far you have not told us anything that says that you do not owe the debt or that they did not provide the services. Since this is a sole proprietorship, it is your debt and your only way out of paying is bankruptcy. For a $500 debt that would be overkill.

So if you do get sued, then (if you really have no defenses) expect to lose and get a judgment for the debt plus interest from the judgment date. The company will then try to enforce that judgment, but without any bank accounts or wages to garnish that may be hard.

I found out yesterday I am being charged late charges for each month it is past due. The balance at the beginning was 479.00 it is now 513.00.

And where in your areement is it specified that you owe late fees? If late fees were not part of the original agreement, then they cannot just start unilaterally adding them.

 

[dinkado]

Thank you some guy. I do owe the money and want to pay, I just don't know how to pay it. I have been looking for work but my age and disability are huge factors in getting employment.
Would it be reasonable to ask them to trade my skills towards the balance. In other words I could do work for them to repay the debt.
They are an online advertising firm and I did not agree to late charges nor have I seen the contract. It is all verbal and over the phone.
Your time for responding is greatly appreciated.
Thank you!
dink

 

[Some Random Guy]

Would it be reasonable to ask them to trade my skills towards the balance. In other words I could do work for them to repay the debt.

Highly doubtful that they would agree to this. You have shown yourself to be unrelaible in the past and the fact that your web design business failed is not a good selling point on your services.

There is no way that the company will come out ahead on trying to give you two days worth of design work. It will take them more time than that to gather the work, get you familiar with their needs and then approve the results.