Legal Question in Business Law in Michigan

Client out of business, still owes money, any advice?

Small IT Consulting LLC company in Michigan. One of my clients went out of business owing me around 8K for services in 2007, which was due by 12/08 (not paid, have contract). We also have a 3 year service contract that was to run through Feb 2010 at $800 per month, which he stopped paying in December 2008 (which is when he went out of business). We met him in December, and he verbally agreed to make payments on the 8K plus 1/2 of the remaining service contract. We have not heard anything from him since that meeting. We do send invoices each month. I believe he is no longer at the business address. I search Michigan.gov/business but see he has not filed any annual papers or dissolution. My fear is that we are basically out of luck here. His business was an LLC in Michigan as well. I would be happy recovering just the 8K as that was for services and products actually rendered and supplied. The 1/2 of the remaining service contract is not really an issue, as we are not performing any further services, although if there is a way to enforce the agreement I would certainly love to. I'm just wondering if there is anything I can or should do here.. or do I just count this all as a loss. Thanks for any advice!


Asked on 5/06/09, 4:11 pm

1 Answer from Attorneys
Blake Lipman Law Office of Blake P. Lipman

Re: Client out of business, still owes money, any advice?

If the contract is with the LLC (not an individual) then you are probably not going to be able to collect the amount owed. I represent a number of IT firms such as yours. For more information, please contact my office at (248)8513171.

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Answered on 5/06/09, 4:32 pm


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