The importer fail to pay the factory for the good received and sold, what can factory do to hold importer accountable?

Asked over 1 year ago - Tustin, CA

The California Importer intentional mis-represented himself as a reputable company in the US and imported goods from oversea factory at FOB value of $350,000 about 18 month ago, and sold the goods but no payment made to factory at all. Factory tried all the ways of collecting the money but no result. Now factory heard the importer in the process of file bankruptcy, is there any way factory can do anything to hold the importer accountable?

Attorney answers (3)

  1. Michael Charles Doland

    Contributor Level 20

    1

    Lawyer agrees

    Answered . Horrible news, and much too common.

    You can try a very uphill battle in the bankruptcy court but your chances of prevailing are very small, and a victory is that the debt is "not dischargeable", not that you collect money.

    The surest solution is the irrevocable letter of credit. My successful clients charge 50% at placing the order and 50% for shipping. "Payment against documents is very rarely used any more.

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more
  2. Eric Burton Strongin

    Pro

    Contributor Level 12

    1

    Lawyer agrees

    Answered . I would immediately consult with an Attorney that specializes in debt collections and contract enforcement. We have an attorney with our firm that does precisely that. We are located in Orange County and throughout California. Give me a call and I would be happy to point you in the right direction and introduce you to my colleague.

  3. Luca Cristiano Maria Melchionna

    Contributor Level 16

    Answered . Hire an attorney and file in bankruptcy court. Good luck.

    This reply is offered for educational purpose only. You should seek the advice of an attorney. The response given... more

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