Can a firm legally take your personal belongings or sue you?
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Can a firm legally take your personal belongings or sue you?
I worked for a small business that folded within the first year. At the time I thought I was helping to grow the business and sign as a guarantor for working capital. The owner old boss changed paperwork and an old co-worker and myself are receiving threatening calls from a legal firm. They said they will come take my furniture and belongings to sell at auction. What legality do they have? They say the are going to seek legal action but my old boss has supposedly been paying back a monthly fee to this company. It’s been over a year and I haven’t heard a word on the matter until yesterday. What should I do?
Asked on May 2, 2019 under Employment Labor Law, Texas
Answers:
B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
It sounds like this firm is trying to engage in collection actions which are generally illegal in the State of Texas. IF they have a judgement against you, they could potentially ask the court to issue what is called a 'Writ of Attachment' to seize certain assets to secure payment of a valid judgment. However, personal property items and your regular vehicles that you use for employment are generally protected. Regardless, to go to this extreme relief, you would have had to have been served with a second lawsuit, been served with notice, and then you would have the chance to object. If none of this has happened, then they are threatening something that they don't have the legal ability to do....which is a violation of federal and state collection laws.
This really sounds like an agressive scam. You really need to hire an attorney for the limited purpose of sending a demand letter and requesting that all future communications go through the attorney. I suspect that once they get a demand letter, they will cease communications.
Another option is to file a complaint with the Texas Attorney General. Go to their consumer web page. This is free and has some very helpful information. The main draw back is that they tend to be slow to respond to complaints....just because of the sheer volume of complaints. The FTC can also do a similar investigation on the federal level.
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