What to do if I paid ahead for many laser treatments from a laser skincare company that went out of business?

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What to do if I paid ahead for many laser treatments from a laser skincare company that went out of business?

They very abruptly went out of business and I have many outstanding treatments for which I’ve paid but which I have not received. I have been unable to contact them (the phone numbers they provided don’t seem to be in service). What can I do to get my money back?

Asked on January 30, 2015 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

You might not be able to get your money back, unfortunately.

If the company was not a corporation ("inc.") or limited liability company ("LLC"), you could sue the owner(s) personally for the return of your money and possibly collect from their personal assets or income (e.g. by putting  lien on their home) if the don't pay voluntarily.

But if the company was a corporation or LLC, you can only try to collect from (sue) the company itself. If it is no longer in business, it may not have any income or assets to collect from--so even if you won the lawsuit, you would not get money if there is no money there. And if the corporation or LLC was dissolved, then you can't even sue--the thing you'd be suing no longer exists.


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