Legal Question in Business Law in California
When a business closes and owes money to my small company, how do I pursue getting paid? They aren't in bankruptcy - although I previously thought they were..
3 Answers from Attorneys
Pretty much the same way you collect from a business that hasn't closed. Closing doesn't affect the liability -- it merely makes those who are liable harder to reach. Closing may, however, give a creditor additional ammunition. For example, if it were a corporation and is liquidating without provision for creditors, in addition to a right to sue the corporation on the original debt, you may now have a claim against the corporate insiders personally for taking illegal distributions before satisfying creditor claims.
You sue and hope for the best, for judgment and for collection. Serving them will be a problem, do so on the 'agent for service' listed.
Contact me directly for assistance in collections.
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