Can a company just change their EIN and not pay past debt while they are still operating as the same company?
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Can a company just change their EIN and not pay past debt while they are still operating as the same company?
I bought a set of wheels last year. I bought them as a core exchange, meaning I paid $1000 for the wheels and paid an additional $1500 so they could send me their wheels first. As soon as I received them I would send them my originals back, then they would release my $1500 core payment and only charge me the $1000 that the wheels cost. The company had some “financial issues” and didn’t pay. Now, supposedly, they are a different company, with a new owner, and a new tax EIN. However, they still answer the same phone number that I called a year ago. Is that even legal? Can I sue to get my money back?
Asked on February 29, 2012 under Bankruptcy Law, New York
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
From what you have written, the change in company name and tax identification number seems to be a ruse by the prior company to get out of a valid debt owed by you since it did not file for bankruptcy protection nor dissolved.
From what you have written, I would sue both companies for the $1,500 back claiming that for all intents and purposes the two companies are really the one and same entity and the changes recently made were done to defraud creditors like you.
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