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I had a question about a buisness that my dad owns. He sells…

Customer Question
Hi, I had a...

Hi, I had a question about a buisness that my dad owns. He sells to a customer but that customer went bankrupt. The company was then bought out by a larger company what would happen to the money that the previous company owed my dad's company?

Lawyer's Assistant: What state are you in? And has anything been officially filed?

Illinois

Lawyer's Assistant: Has anything been officially filed? If so, what?

One sec, I am checking that

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

They filed a chapter 11

Submitted: 7 months ago.Category: Business Law
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Answered in 13 minutes by:
11/28/2017
Business Lawyer: Pheobe Clark, Lawyer replied 7 months ago
Pheobe Clark
Pheobe Clark, Lawyer
Category: Business Law
Satisfied Customers: 154
Experience: Attorney at Pheobe A Clark Attorney at Law
Verified

Sorry to hear that your father has to now function as a bill collector. To protect his rights, I believe your dad should proceed with 2 actions.

1) He should confirm that he is listed as a creditor on the Chapter 11 bankruptcy petition. This is his way of making a claim for payment due, but he will be standing in line behind creditors with secured claims.

2) He should contact the large company making a demand for payment as the larger company is believed to have assumed the debts of the company it took over. The larger company will then advise if the buyout agreement allowed for payment of old debts or not.

I have included a copy of a unsecured creditor handout, that should direct you on the best actions to take in order to secure your claim and ger paid.

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