Skip to main content

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

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?

+ Read More

Attorney answers 2


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 This posting is provided for “information purposes” only and should not be relied upon as "legal advice". Nothing transmitted from this posting constitutes the establishment of an attorney-client relationship. Applicability of the legal principles discussed here may differ substantially in individual situations or in different states.


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 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.

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer