Legal Question in Bankruptcy in California
If someone filed bankruptcy on your business and they want to sign up for continued services do you have to provide services even though they didn't pay you what they owed you?
We are a public school however this is for an extra fee for service daycare program.
1 Answer from Attorneys
I assume that "filed bankruptcy on your business" means that someone owed your business money, and that person filed bankruptcy. If that is the case, you need not provide further services to the person.
You cannot do anything to collect the original debt, if it was discharged, but you need not provide additional services.
If the person who owed money to your school volunteers to pay the discharged debt, it is fine. You cannot, however, do anything to collect the debt (e.g. send the person to collections or sue in court).
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