Legal Question in Credit and Debt Law in New York

This is a fairly complicated issue. The short answer is maybe. It depends, among other factors, on the type and amount of debt, the manner in which the corporation was dissolved, statute of limitation issues, other parties and additional claims that can be made.

Often times an issue like this cannot be answered in advance and the only recourse is to commence a law suit and see how it proceeds.

Q. 1. Can a dissolved or defunct corporation sue to collect an alleged debt?

A. Generally, yes. A corporation that is dissolved has the ability to wind-down its affairs. Part of this process is collecting on receivables and the payment of outstanding debt.

Q. 2. If an entity sues as a corporation but, in fact, it is not a corporation, is the action viable?

A. Generally, yes. However, the question is so broad that it is hard to give a specific answer.

Mike.