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What do I do if a company goes out of business without fulfilling their agreement?

Marysville, OH |

I purchased an extended warranty from a company and when I called to file a claim I was informed that they are no longer in business. Is there anything I can do to recoupe my investment? What are my options or do I even have any since they are no longer in business?

Attorney Answers 3


Depends on what "no longer in business" means - did they merge with or sell to another company who assumed their obligations, including their warranty? If so, then that new buyer should be able to help you.

Did they file for bankruptcy? If so, then it's very unlikely that any successor would assume these obligations.

Check the warranty to see which state's law applies to the corporation and its warranty, then check the Scretary of State records to see thae status of the company. Or call the company back, since they apparently still have someome answering the phones, and get more information about any successors to the company.

Avvo doesn't pay us for these responses, and I'm not your lawyer just because I answer this question or respond to any follow-up comments. If you want to hire me, please contact me. Otherwise, please don't expect a further response. We need an actual written agreement to form an attorney-client relationship. I'm only licensed in CA and you shouldn't rely on this answer, since each state has different laws, each situation is fact specific, and it's impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue.

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Thank you for the quick response. I actually found out they were out of business by looking them up under the BBB. I found that there were 66 complaints filed within the last year and according to the BBB the company went out of business.

Pamela Koslyn

Pamela Koslyn


Again, "out of business" doesn't say anything about the things I mentioned in my response. Note the BBB is a private trade group with no authority to do anything, and I'm not sure their information is reliable. A lot of complaints may or may not mean something. Use a better source for your information about this company like the Secretary of State, and/or PACER for federal court records including bankruptcy.


At the very least, please call the Ohio Attorney General's Consumer Section and make a complaint. The Ohio AG has attorneys and investigators dedicated to holding companies responsible under the Ohio Consumer Sales Practices Act. Occasionally the Ohio AG's Office will file suit against a company on behalf of consumers and will seek to recover a consumer's damages.

Disclaimer: This does not constitute legal advice. No attorney-client relationship has been formed through this answer.

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I agree with Attorney Koslyn. A lot will depend on what "out of business" means. If the company has filed for bankruptcy protection, you are going to have a tough time of it.

You can check the Ohio corporate records, here, to see what they have on the business, if it was in fact a corporation:

Depending on the circumstances, you *might* be able to file an action against the owners of the business or the officers and directors, if it was a corporation.

James Frederick

*** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state.

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