I am a principal in an S-Corp. We just recently settled a lawsuit. The settlement has wiped us out and our reserves is at $0.00. However, we still have a very large attorney bill. We have been making payments every month and have never missed making some kind of payment. Now that the settlement is done our attorney is demanding payment in full of the balance and is threatening to send our account to collections and sue us for the balance even though we have never missed making a payment to them. We are paying what we can. As our receivables increase we will increase our payments. But recovery from the settlement process does not happen over night. They have never demanded payment in full before; only now that the case is settled they are demanding payment in full.
Were you named as a party in the lawsuit? If so, you have already been sued and may be included in the settlement. Did you personally guarantee payment of this debt? It would sort of make a difference in how the volunteer attorneys might answer your question. Hope this perspective helps.
You probably need to speak with a second attorney to help you understand your rights here. Debt collection in Wisconsin is complicated. But you have a lot of protections. You may want to look at the Wisconsin Consumer Act (WCA) and the Federal Debt Collection Practices Act (FDCPA), or summaries of them. It sounds like you paid out a settlement. Perhaps the attorneys think you will not be able to make payments in the future. If you have been paying the amount agreed to on time there is no reason for them to demand the money all at once. But negotiating with them should help. Perhaps there is a misunderstanding somewhere.
Best of luck.
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