1. even if a company does business as an LLC or C corp, etc. if there wasn't much in assets when it was started (like cash), your corporate entity probably doe

1. even if a company does business as an LLC or C corp, etc. if there wasn't much in assets when it was started (like cash), your corporate entity probably doesn't holdup; 2. most likely, you signed a contract with Rackspace personally right? 3. as for the merchant/credit card account - most require a personal guarantee anyway So, first of all - I am sure your lawyer will defer or write off a bunch of that bill - happens all the time, especially if you have already paid a number of previous bills. Rackspace is probably doing what most creditors do - acting as aggressively as possible. If they turn it over to collection, they are already looking at a huge writeoff (collection agencies get a nice percentage of whatever they collect and usually also have authority to write down the debt substantially in offers in compromise). So when push comes to shove, if you offer them a payment plan, I bet they will go for it or at least counter offer. Offer them $1,000 now, and $500 a month for 10 months say - that's full payment of the account. If you feel lucky, offer $3K, $1K now and $500 a month for 4 months. The credit card account is going to be sticky - because unlike rackspace who made a profit margin on the $6K you owe, the credit card company has probably already refunded the $$ to cardholders that it "paid" to you - the fact that you describe it as "huge" doesn't help - I would assume it may be the majority of all payments advanced to you by the merchant provider. Again, you can probably propose a payment plan which has a good likelihood of being accepted. Good luck.