4 ms·

TL;DR The collections agency can sue you, garnish your bank account without even informing you, and if you want to challenge that, you can only do so in private

TL;DR The collections agency can sue you, garnish your bank account without even informing you, and if you want to challenge that, you can only do so in private arbitration and you cannot also be a part of a class-action lawsuit. Despicable. But is anyone surprised anymore? This is a country for the corporations by the corporations. The common folk are just critters to be exploited. Is there a way to incorporate yourself, so that you take a loan not on your person but on your corporate self?

deleted 11y ago
[deleted]
philipov 11y ago
You're free to set up a corporation provided you can pay the incorporation fee ($100-250), but who's going to loan money to an entity without assets for collateral?
- deleted 11y ago
  [deleted]
vijayr 11y ago
Is there a way to crowd source this thing? Like, is it possible to build a database of companies and their unethical contract practices? Before signing any contract, a person can simply check this database for any red flags (through a website or an app)? I understand this won't save all cases, but it might help?
- sjg007 11y ago
  sounds like a good idea.
klunger 11y ago
Form an LLC. Not quite a corporation, but accomplishes what you are looking for. http://guides.wsj.com/small-business/starting-a-business/how-to-start-an-llc/ http://guides.wsj.com/small-business/starting-a-business/how...
- jt2190 11y ago
  The liability protection of an LLC only covers legitimate business activity. As soon as you've mixed your personal activity with that of the business you've "pierced the [thin] veil" between you and your business, and your personal assets are no longer protected.
  - jrs235 11y ago
    Not only this but most single member LLCs will require personal liability or co-signer [usually from the single member] for any loans or debt. So if the LLC doesn't pay, the single member will have be liable.
    - jt2190 11y ago
      Er, what? The LLC doesn't require personal liability... That would kind of defeat the whole purpose! Perhaps you mean that sometimes those extending loans to single-member LLCs require that the member co-sign the loan? (edit: I'd walk away from that loan, given the issue of piercing the veil I mentioned in my previous post.)
      - jrs235 11y ago
        No if I were to try to get a loan or credit card (a.k.a. a line of credit) for my LLC (which has basically zero assets), the bank or credit card company would require me, personally [edit: or someone else with assets], to cosign. "Perhaps you mean that sometimes those extending loans to single-member LLCs require that the member co-sign the loan?" Yes. As long of the funds from the loan are used strictly for LLC business purchases and purposes one should be able to keep the corporate veil in place. Even if the LLC defaults on the loan/debt the creditor doesn't need to pierce a corporate veil to go after your personal assets to repay the loan... they have your personal liability signature. Your corporate veil would/should still be in place for any other transactions that the LLC is a party to.
        jt2190 11y ago

deleted 11y ago

[deleted]

philipov 11y ago

You're free to set up a corporation provided you can pay the incorporation fee ($100-250), but who's going to loan money to an entity without assets for collateral?

deleted 11y ago
[deleted]

vijayr 11y ago

Is there a way to crowd source this thing? Like, is it possible to build a database of companies and their unethical contract practices? Before signing any contract, a person can simply check this database for any red flags (through a website or an app)? I understand this won't save all cases, but it might help?

sjg007 11y ago
sounds like a good idea.

klunger 11y ago

Form an LLC. Not quite a corporation, but accomplishes what you are looking for. http://guides.wsj.com/small-business/starting-a-business/how-to-start-an-llc/ http://guides.wsj.com/small-business/starting-a-business/how...

jt2190 11y ago
The liability protection of an LLC only covers legitimate business activity. As soon as you've mixed your personal activity with that of the business you've "pierced the [thin] veil" between you and your business, and your personal assets are no longer protected.
- jrs235 11y ago
  Not only this but most single member LLCs will require personal liability or co-signer [usually from the single member] for any loans or debt. So if the LLC doesn't pay, the single member will have be liable.
  - jt2190 11y ago
    Er, what? The LLC doesn't require personal liability... That would kind of defeat the whole purpose! Perhaps you mean that sometimes those extending loans to single-member LLCs require that the member co-sign the loan? (edit: I'd walk away from that loan, given the issue of piercing the veil I mentioned in my previous post.)
    - jrs235 11y ago
      No if I were to try to get a loan or credit card (a.k.a. a line of credit) for my LLC (which has basically zero assets), the bank or credit card company would require me, personally [edit: or someone else with assets], to cosign. "Perhaps you mean that sometimes those extending loans to single-member LLCs require that the member co-sign the loan?" Yes. As long of the funds from the loan are used strictly for LLC business purchases and purposes one should be able to keep the corporate veil in place. Even if the LLC defaults on the loan/debt the creditor doesn't need to pierce a corporate veil to go after your personal assets to repay the loan... they have your personal liability signature. Your corporate veil would/should still be in place for any other transactions that the LLC is a party to.
      - jt2190 11y ago