Can a "went out of Business" small distributor sue you for not paying your bill?

Asked about 2 years ago - Old Orchard Beach, ME

I owe a small distributor $235.00 that went out of buisness, he keeps harrassing me with phone calls and threating letters. I am unemployed at the time and can not pay this. What are my options?

Attorney answers (2)

  1. Adam Jay Jaffe

    Pro

    Contributor Level 15

    1

    Lawyer agrees

    Answered . Generally speaking, if a business goes "out of business" they have sold off all of their assets and liabilities. If it is a corporation, generally, they have taken steps to dissolve. If it is a person who was operating under a fictitious business name, well, they can seemingly always try to collect.

    Talk to a lawyer and get advice on status of company. It may be possible that you can get away without paying. If he sues you, then you are "judgment proof" until you have a job, assets, or both.

    -Adam Jaffe Law Office of Adam Jay Jaffe PO Box 2437 Camarillo, CA 93011-2437 (805) 504-2223 www.... more
  2. James P. Frederick

    Contributor Level 20

    Answered . While I agree with the other response, it seems silly to speak with an attorney over a $235 debt. You say that you do not have the ability to pay. The contractor cannot get the money from you without going to court. Are they going to take the time and money to take you to court over $235? If they do, then you will need to deal with this. If they do not, then you need to endure the phone calls and letters. If it gets to the point where you do not want to do that, you can try to find a way to pay. Maybe they will take installments. If you pay them $20 a month, you will have it paid off in less than a year.

    James Frederick

    *** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and... more

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