Can a company collect on outstanding invoices of abusiness that has been foreclosed on and taken over by new ownership?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a company collect on outstanding invoices of abusiness that has been foreclosed on and taken over by new ownership?
A warehouse company is owed close to 12k by another company for outstanding invoices. After repeated attempts to collect, the warehouse company is told that the other company was foreclosed on and that there is new ownership and a new name of the company. New ownership says they are not liable for the past debt of the old company and only liable for the new debt they have incurred since they took over. How does the warehouse company get the full money owed, rather than just the debt incurred by the new ownership?
Asked on October 21, 2011 under Bankruptcy Law, California
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If there has been a foreclosure by another competing creditor upon the same debtor that your company is seeking to collect against, the other creditor was first in time to collect upon the assets of the debtor before yours and there seems to be nothing that you can do as to the assets collected upon to date unless your company was in a higher secured position as to some if not all of the assets that were previously obtained.
Your company's recourse is to go after other assets of the debtor that have yet to be levied upon by a competing creditor that you have written about.
I recommend that you consult with an attorney who practices in the area of debt collection for creditors.
Good luck.
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.