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Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I am a mobile notary. I did some work for a company and they

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I am a mobile notary. I did some work for a company and they owe me $475. They are refusing to pay me and say they do not have the money. They have offered $35 for me to release the whole thing. They said they are going through a bankruptcy but there is no bankruptcy files yet. They have started a new business and are redirecting their clients there. I do not want to go through small claims court but if I have to I will, but if they declare bankruptcy won't it dismiss it anyway? What is your advice?


This is an unfortunate situation


If the company that you owe the debt files bankruptcy the debt would be gone,


usually corporations do not file the bankruptcy, they just let it go, and start a new business,


If you had them personally guarantee the debt, the company bankruptcy would not hurt you if that is what they do.


If they did not personally sign off,


your only option is to sue the company in small claims court and try to achieve a better settlement,


I would file the small claims court case regardless, as they may be trying to force you to settle for a lower amount.

Customer: replied 3 years ago.

So there would be no option to go after the new company for the debt? It seems unfair they can declare bankruptcy in one business (I doubt it was a corporation - it is a mom-and-pop type mailbox/fed-ex shop) and open the exact same business right down the street?

It is possible for you to go after the new company if you had them personally guarantee, or could sue the new company in civil court and claim fraud, you would have to prove that they hid assets from the old company and put them into the new one.

Those types of suits are expensive and not worth the time and expense. It may be worth it to sue the new company as well in small claims court under fraud, and see if they settle with you

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