Legal Question in Business Law in California

I need to know what to do when a auto dealership owes my business money, but the company went out of business overnight, no warning, of course. The amount is close to $4000.00


Asked on 8/10/09, 2:08 pm

2 Answers from Attorneys

Terry A. Nelson Nelson & Lawless

File a small claims action and serve it on the registered agent, then when you get the bankruptcy notice, file your Claim with that court.

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Answered on 8/10/09, 2:37 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I agree with Mr. Nelson's advice, and would like to expand on his words a bit.

When a business closes its public premises and stops holding itself out to accept customers and continue business as normal, this does not necessarily mean that the business ceases to exist, or has no assets, or can't be sued. There are processes for winding up the affairs of any business that is closing, whether the business be a proprietorship, partnership, LLC or corporation, and whether the closure is voluntary or forced.

Maybe this dealership is winding up its affairs normally, and will send you a check for what you're owed in the next few days or weeks. Maybe the check won't bounce!

At this point, you probably can't tell whether it is dissolving, bankrupt, or whatever.

If you send me the name of the dealership (preferably the full legal name), I will look up whether it has filed for BK and who its registered agent for service of process is, no charge.

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Answered on 8/12/09, 4:16 pm


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