When a Company Goes Out of Business, what happens if there is litigation pending against them?
Acme Co. Inc. is being sued by Person A. Person A wins the lawsuit and is awarded a reasonable amount of money. If the company goes out of business before it has paid Person A, can Person A still get their monetary award? If not, is there any recourse for Person A? Do corporations have to remain "alive" on the books with money in reserve until all judgments against them are cleared?
Like any " winner awarded awarded a settlement " in a law suit....there is no guarantee you will ever get any money...corporations can claim bankruptcy at anytime...if this is the case get in line and wait your turn for recouping any $ .
I sold a business once and held papers with a large amount owed to me...the buyer sold the equipment , and left the country...he was not a US citizen..
.I spent thousands of dollars retaining an Attorney... four years laterI won the lawsuit, however the person has returned for short visits to America, but never resided.....So you can win a lawsuit, but may never get a penny....lesson learned by the way....
I hear that, kj force! Already learned that lesson myself. I just wasn't sure what would happen if the company ceased to exist entirely--not just claimed bankruptcy. If everyone left, no phones or addresses or websites... Then what?
As far as I was lead to believe , even if it is NOT a bankruptcy pretty much SOL. a Clinical Group closed their doors, without notice and the patients can't even get their medical records and it's been over 2 years.
No, they can go out of business because they can't pay the judgement, while liquidating everything with the proceeds going to all debtors may be the only solution.
by Dan Harmon 13 years ago
Walgreens has been sued By Edwin Dewitt, pharmacist, over immunizations.http://www.idahostatesman.com/2012/05/2 … -over.htmlIt seems that Dewitt's religion considers any injectable substance, including medicines, to be "harmful" to the body and is forbidden. When Walgreens...
by junko 11 years ago
I remember when I was growing up in a community where there were small community supermarkets and appliance stores all around the town. There were Drug stores and hardware stores, bakeries, and fish markets in walking distance all over town. Walmart drove almost all of those small business...
by A Thousand Words 11 years ago
There's no one to step on/take advantage of anymore?Capitalism is defined as:- free-market system: an economic system based on the private ownership of the means of production and distribution of goods, characterized by a free competitive market and motivation by profit. Doesn't raise any red flags...
by Healing Herbalist 12 years ago
What would you pay for a Hostess snack?The Hostess company is going out of business. People are now selling Twinkie's and other Hostess snacks on ebay for $25 or more a box. Would you pay this much for a box of snack?
by AngelaSolomonson 14 years ago
How do you pay a collection agency if they have gone out of business.I have a collection and would ;like to pay it. but the company is out of business. I am unable to contact them by the numbers that are on the collection sheet they sent.
by Stacie L 9 years ago
Will fast food restaurants ever go out of business?The trend is leaning towards healthier eating, so will fatty, sugary and fried foods ever go by the wayside?
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