How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Roger Your Own Question
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 30898
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
Type Your Bankruptcy Law Question Here...
Roger is online now
A new question is answered every 9 seconds

Small Plumbing company does local repair work for property

Customer Question

Small TEXAS Plumbing company does local repair work for property management company based in another city and parent company declares bankruptcy ... THURSDAY ... what steps do I need to take NOW ... POC is saying they sent him some check and doesn't want to come out of pocket with my invoices ($3K+) offering 20¢ on the dollar ... NO WAY ... Am I wrong or doesn't HE owe us the money ... ALL the $$$ ... not the parent company ... HE contracted us (via e-mail) not the parent compay ...
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 4 years ago.
Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney here to assist you.If the company you work for has not declared bankruptcy, you still have a right to seek and demand the full balance due to you. The parent company's filing should have no effect on the company you're dealing with. However, if the company you have a contract with files as well, that's a different story. I would recommend that you demand payment in full, and if they don't pay, file suit in small claims court for the debt owed. Unless you get a notice from the US Bankruptcy Court telling you that this particular company has filed bankruptcy, you can proceed with collecting. The problem often becomes that the subsidiary cannot finance its own operation without money from the parent.
Roger and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 4 years ago.
Well Kirk, Like it or not (LOL) your answer confirms what I knew to be true ... thank you for taking the time.
Expert:  Roger replied 4 years ago.

Glad to help. I hope for your sake that the subsidiary isn't wholly dependent on the parent company. If so, it will probably dry up as well and you'll find yourself filing a proof of claim against the company in its own bankruptcy.


Please let me know if you have any additional questions. Good Luck!

Related Bankruptcy Law Questions