Legal Question in Business Law in Ohio

Past due invoices in restructured company

We have done work for a client for 7 years with no problems. Last year orders dropped and the average invoice went from under 45 days to pay, to 90. In December, they shut the doors,and reopened 2 months later, after restructuring the company. They are not paying old invoices, refuse to return the parts,cancelled purchase orders, and bounced a check, all totaling nearly $15,000. Is it possible to collect? Is there an attorney that would work on commision, if it were collectible? The people in charge are still the same, and the current owner was involved with the company prior to the restructuring. They did not claim bankruptcy.


Asked on 4/10/02, 2:25 pm

2 Answers from Attorneys
David Weilbacher, Esq. Attorney at Law

Re: Past due invoices in restructured company

Based on the facts as you have related them, it appears that the invoices remain collectable against the newly restructured company. I do a great deal of collection work, and I am willing to discuss this matter with you in greater detail to determine if I can be of some assistance to you. Generally, I work on a contingency basis, which is a fancy way of saying commission. Please feel free to contact me at your earliest convenience at 216.241.2500.

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Answered on 4/11/02, 11:50 am
Brian Halloran Brooking and Halloran, PLLC

Re: Past due invoices in restructured company

Based upon your facts, and the fact that no bankruptcy was filed, then it appears that the debts are still valid and collectible, even against the restructured company. You'll need to contact some attorneys in your area to determine if any of them will take such a case on contingency. Be aware that in such a contingency case, the attorney might charge upwards of 50% of the recovery to make it worth their while to pursue. Good Luck.

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Answered on 4/10/02, 3:36 pm


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