Laura Schneider profile image 92

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?

sort by best latest

kj force profile image76

kjforce (kj force) says

3 years ago
 |  Comment
  • Laura Schneider profile image

    Laura Schneider 3 years ago

    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?

  • See all 2 comments
tamarawilhite profile image87

Tamara Wilhite (tamarawilhite) says

8 months ago
 |  Comment