Legal Question in Business Law in Virginia

My father has a small 8(a) company that is being edged out if competition and solvency by larger businesses due to delayed processing of invoices that is making it impossible for him to make payroll. �

It seems that a disloyal employee placed a certain code in a major invoice that would cause extra scrutiny from DFAS. �This employee seems to be working on behalf of another company.

What can be done to help situations like these? If my Dad doesn't get the invoice paid (which is already greatly delayed) by Friday, he will have to file bankruptcy and his business will fail after more than 2 decades.


Asked on 1/07/14, 7:01 am

1 Answer from Attorneys
Sean Hanover Hanover Law

Speculation will probably not get you much of anything -- at least not legally speaking. Special codes and sabotage aside, what you need to secure is a line of credit. Either personal or business. Often, banks will extend credit based on a valid contract or invoice -- especially when its from the Federal Gov't.

As to the nefarious employee -- would sound like an internal audit would be in order. That person should probably no longer be doing invoices, and the individual responsible for supervising them should be hit several times with a wet noddle.

This, however, does not sound like a legal question. The bankruptcy could be, but I'm confused how things got so bad before you sought help. Often restructuring debt, or contacting creditors will help in situations like this.

Read more
Answered on 1/10/14, 3:44 pm


Related Questions & Answers

More Business Law questions and answers in Virginia