AT&T Sues Over Outrageous Phone Bill; Defense Avoids Bankruptcy
Posted on Jul 10, 2012 9:32am PDT
We all know that talk isn’t cheap. But one man from Ipswitch, Massachusetts almost went bankrupt from the cost of conversation. According to the US and World News Report, AT&T recently sued a company when they weren’t able to pay back their million-dollar phone bill. The phone service claimed that the small business, and most specifically the company CEO, was responsible for a phone bill totaling $1 million. The businessman insisted that the creditors were wrong, and that they had not spent that much money using their telephones. However, AT&T chose to sue over the issue.
The telecommunications company says that it is no longer pursuing claims at this time. However, they insist that they have a right to collect the amount of money owed by the company, none of which has been paid. The $1 million dollar bill is allegedly an inflated and fraudulent claim. Michael Smith, the defender in the case, says that someone hacked into his manufacturing company’s phone system and made nearly $900,000 worth of calls. All of the phone calls were made to Somalia, racking up the extraordinary costs.
Despite the fact that the costs may not have been Smith’s, the phone company wants their payments, and has added interest because of a postponement on the payments. Smith told local news stations that he has requested AT&T write off the bill, but they have not consented. If he is forced to pay the costs, then he will most likely go bankrupt, and all of his employees in the small company will lose their jobs. Sometimes, creditors will insist on payments that you can’t afford. If you feel buried under debt, then bankruptcy may be the best way to get rid of the costs. If you are now able to cover the costs of your debt, then talk to a bankruptcy attorney today!