You need to see what your agreement with Stripe is. Even if you are a corporation you may be liable as you may have signed as the corporation as well as a personal guarantee of some sort.
Get your application documents and see what it says.
Below is exactly what they said (But I don't see anywhere on how its owed by me individually):
This debt is owed by you individually and as the company representative of your business. You can find more info about negative balances in our Services Agreement, Section C. Payment Processing Services:
7. Settlement and Payout Schedule, B. Settlement to Your Payout Account:
[...]
a negative balance in your Stripe Account will result in a deduction, set-off and/or debit of the amounts owed in accordance with Section C.9 below. We may reduce the amount settled to your Payout Account by the amount of Fees, Fines, and amounts owed to us for any reason. If a settlement or debit is processed via ACH, you acknowledge that the NACHA Operating Rules will apply to the settlement or debit, and you agree to be bound by these rules.
And also on Section C. Payment Processing Services: 9.
Security Interests, Collection, and Set-Off Rights:
You agree to pay all amounts owed to us and to our affiliates on demand. Your failure to pay amounts owed to us or to our affiliates under this Agreement is a breach and you will be liable for any costs we incur during collection in addition to the amount you owe. Collection costs may include, attorneys’ fees and expenses, costs of any arbitration or court proceeding, collection agency fees, any applicable interest, and any other related cost. Where possible, we will first attempt to collect or set-off amounts owed to us and to or affiliates from balances in your Stripe Accounts from your use of the Payment Processing Services or from funds that we hold in Reserve. However, we may collect any amounts you owe us under this Agreement by deducting or setting-off amounts that you owe from the Stripe account balance (or debiting the payout account for such Stripe account) for any Stripe account that we determine, acting reasonably, is associated with your Stripe Account. Similarly, we may deduct or set-off amounts from your Stripe Account balance (or debit your Payout Accounts) in order to collect amounts owed to us in relation to such associated Stripe accounts.
In certain circumstances, we may require a personal, parent or other guarantee (a “Guarantee”) from a user’s principal, owner, or other guarantor. A Guarantee consists of a legally binding promise by an individual or an entity to pay any amounts the user owes in the event that the user is unable to pay. If we require you to provide us with a Guarantee, we will specifically inform you of the amount of, and the reasons for the Guarantee. If you are unable to provide such a Guarantee when required, you will not be permitted to use the Services.
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They'll first try and get that debit from your bank account they paid to you.
Now it'll depend with the bank you used,if you don't have any balance in it,you'll likely end up having an overdraft and have your account closed.
Shutting down your company won't eliminate any debt,you'll still be liable as the representative of the company.You're better off just closing your Bank Account.
Just closed my accounts.. but not sure if that prevents a collection agency from coming after me.
Can you tell me if they put the bank account you have on file with them in negative? Or an update on this situation
he was last seen 20 days ago
They just kept overdrafting my bank
acc (which I now closed). Now I'm asking them for legal proof of how I personally am responsible for the debt.
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My next steps are to prove that I individually am not responsible for the Stripe debt. I've closed my bank accounts etc.
Best case - I shut down my co and it's a corporation loss
Worst case - They send collection after me individually and I have to pay a set payment amount every month (Just need to make sure my credit doesn't get hit)..
Any advice on the above new info guys? Tough situation
