Collecting from a Closed Business

Michelle,

I am currently attempting to collect a past due debt from a company that has just closed its doors. I have a collection agency working with me but they have states that since the company is out of business they cannot contact the owner and there is nothing else they can do. Are there any steps I can take to try to collect on this debt?

Thanks, Brian

Brian,

First you will need to know how the business was set up, was it a corporation, an LLC or maybe a sole proprietorship? Depending on that, you may or may not be able to go after the owner. Another thing to look at is the type of debt, was there a contract or agreement or a personal guarantee? If you find the owner is liable for this debt, depending on the amount you can file with small claims court or if the dollar amount is more than small claims court in your state provides for you can sue civilly.

Good luck!

Michelle

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