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I'm fighting to not pay my bill (& get my money back) with a company that just went chapter 11. Can I take them to court?

Asked over 2 years ago - San Diego, CA

I put out a yellow pages online ad and ad in the phone book. They company was AWFUL. It took them 4 months to get my online add correct and then the paper ad in the phone book had so many mistakes because they did not make my requested changes.

I fought with the company with no success. I filed a claim with the BBB. The day before the arbitration I got an e-mail from the BBB saying the company I was working with declined arbitration pending a Chapter 11 decision. So I am back at square one.

I have paid out $700 and they say I still owe them $900. I am not paying them another cent. But now I have collections calling me.

Can I take them to small claims court while they are possibly going through chapter 11?

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Attorney answers (3)

Pamela Koslyn

Reputation Level 20

Answered over 2 years ago. Business Attorney in Los Angeles, CA.

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You can't sue them if they've actually filed a bankruptcy petition, since that stops all claims. You can verify if they've actually filed for bankruptcy protection by checking the PACER database, linked below. if their petiton lists your debt as an asset, the trustee may pursue you. And if they have filed, unfortunately, your claim against them will be discharged so you won't be able to pursue it.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.

PACER

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Alan James Brinkmeier

Reputation Level 20

Answered over 2 years ago. Lawsuit / Dispute Attorney in Chicago, IL.

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The bankruptcy petition prevents the filing of a claim against the putitive bankrupt.

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Clifford Sculley Bordeaux

Reputation Level 10

Answered over 2 years ago. Chapter 7 Bankruptcy Attorney in Pasadena, CA.

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Assuming they filed Chapter 11, your claim against them needs to be handled through the "Proof of Claim" process. You may not receive a Proof of Claim form automatically, since the company may not realize that you believe you have a claim against them. However, you can look up the case on Pacer, find out who the Trustee is, then call the Trustee's office to request a Proof of Claim form.

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