Legal Question in Credit and Debt Law in Massachusetts

collecting a bad debt

I had a corporation with an outstanding debt owed for 1.5 years by an individual. Since then, I have closed the corporation and am still trying to collect this money. Do I have any legal leg to stand on? The amount owed by this person is in excess of $8000.00 I have no problem with paying taxes on this money when received.


Asked on 6/24/06, 12:42 pm

2 Answers from Attorneys
Joseph Murray Joseph M. Murray, Esq.

Re: collecting a bad debt

You typically have three years from dissolution of a corporation to wind down its affairs, and the statute of limitations on most contract debts is six years and can be as long as 20 years if they are under seal or involve real estate.

Retain an attorney to pursue the matter. Good Luck!

Read more
Answered on 6/25/06, 12:31 pm
henry lebensbaum Law Offices of Henry Lebensbaum (978-749-3606)

Re: collecting a bad debt

If the corporation was formally closed, and the debt belongs only to the corporation, I think it is too little too late.

Read more
Answered on 6/24/06, 1:43 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Massachusetts