Legal Question in Bankruptcy in Texas
Protected by bankruptcy law?
I have learned that the business I'm dealing with filed for bankruptcy months ago when they were under another business name. They continued doing business under the present name and that's when I entered into an agreement to have some work done, which I paid for in full at the time. Now they refuse to do the work or refund my money. Are they protected under the bankruptcy law from being sued by me for recovery of my money? I am not listed as a creditor. The point I'm making is that I became involved with this business months AFTER they had filed bankruptcy.
1 Answer from Attorneys
Re: Protected by bankruptcy law?
It depends to some extent on what type of bankruptcy was filed. If it was a Chapter 7, post filing debts are not discharged and you are entitled to normal remedies. If a Chapter 13 was filed and the company was still operating under the Chapter 13 Plan you would go to the bankruptcy court for remedies, which may be the same remedies you could get in state court. If the company filed a Chapter 11 and the case is closed you may use the state courts as though a bankruptcy were not filed.
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