FACT – If the entity in question was incorporated, without a signed personal guaranty it would be illegal for a collection agency to pursue that debt.    While it is very frustrating and not at all fair, there are laws in place that govern these actions when the debtor company was organized as a corporation or an LLC and is no longer operating.    The exception to this is the presence of a signed Personal Guaranty or if the original business was created as a partnership or a proprietorship.