I am a videographer subcontracting to a photographer who has a substantial outstanding balance. Assumed the debt, sold the company to his son and he claims he dissolved the company that we were doing business with and therefore is no longer responsible for the $85,000 balance he owes us. Can I legally contact those clients to deliver the product and collect their balance.
Estate Planning Attorney
I person can not merely claim that company A has gone out of business, transfer all of the assets from Company A to company B for no consideration and then tell his creditors tough luck. Under New York law such a transfer would be considered a fraudulent conveyance and you would be able to pursue any assets that were transferred for no consideration. In addition if Company B is merely a alter ego of Company A or or the owner of the company you may also be able pursue you money this way. In any event I would encourage you to not merely give up on this debt. Contact an attorney that regularly engages in debt collection such as my firm for a consultation.
If the photographer personally assumed the debt, then it wouldn't be true that he isn't responsible to pay the balance, unless he has personally filed bankruptcy. It might be a good idea to consult a local attorney about this.