REALLY need help on this one!

Ok, I am the owner of a single member LLC in Florida. I am a sub agent of a company American Wireless who is considered the master agent. I sell cellular phones and contracts and recieve around $400-$450 activation. I am supposedly liable for "chargebacks" on commissions that American Wireless recieves back from the carriers if they customers do not pay their bills or keep their phones 120 days. The industry standard for these chargebacks is 10-20 percent, 20 being VERY high. AW is telling me that I have had 50% chargebacks on my customers from August to November and that I owe them somewhere near $100,000. They have cut me off by holding my commission checks and not releasing my phone orders. Obvioiusly my natural reaction is to want to dissolve the LLC and say forget it. My concern is that my father signed some sort of personal guaruntee to them when we first got into this for a credit line of $20,000 with them to order phones on. To what degree is my father liable if I dissovle the company? Can and will they sue him for this? I understand for the most accurate answer, you would need to see the agreement that he signed, but can some of you please give some initial advice here and what steps I should take? THANK YOU SO MUCH IN ADVANCE!

You know where to start. Get out your agreements or get a copy from the company. Read everything. Determine the outstanding balance. Get a copy of the charged back phones listing with names of those who pulled out. Contact each of them to determine why they dropped the service. Are they still using the phone with a different provider? Did they have problems with service causing them to switch?

I'd say you have ignored these contractual agreements too long and should get an attorney to help you get this all settled. In a high volume operation like this, you should have had quicker notification of the increasingly large number of contracts lost so that you could make arrangements to protect yourself by setting aside money for lost contracts. So I think your service provider may have some liability here. Get a copy of your Dad's agreement on the line of credit. ASK THEM FOR IT.

Get on it.