If I paid a business to render services but the business never rendered the service and has now filed for bankruptcy, what are my options?

Get Legal Help Today

 Secured with SHA-256 Encryption

If I paid a business to render services but the business never rendered the service and has now filed for bankruptcy, what are my options?

A local business committed to sell some service and based on that a payment to the business was made by check. The business took the money but did not render the service. A police case has been filed but the business has filed for bankruptcy. Can I file a criminal case? What are the pros and cons. An officer of the company/business made a commitment. Is there no personal liability to make the person accountable? What should I anticipate my cost of recovering my money, if that is even a possibility?

Asked on December 29, 2011 under Business Law, Virginia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If the company that you paid money to for services has filed for bankruptcy protection, you cannot bring a lawsuit against it in that there is an automatic stay in place from any such lawsuit under bankruptcy law.

If the contract was a written contract and the person who signed the agreement for the bankrupt company did not sign on its behalf, but rather individually, you might have a basis for suing that person individually for the money paid where no services were rendered. As such, you should carefully read all written documents you received concerning the transaction you are writing about.

If there is a criminal investigation pending concerning this business and its representatives, you should contact the police department who is doing the investigation about it in order to make another report about what happened to you. You cannot file a criminal case. Only the district attorney's office can.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption