Results 1 to 2 of 2
  1. #1
    Join Date
    Mar 2012
    Posts
    1

    Angry Suing a Business Filing for Bankruptcy - Breach of Contract and Fraud

    I own a marketing company and a social media client has just canceled their 1 year contract, just 4 months in.

    The client may be filing for bankruptcy. I want to sue based on breach of contract and fraud, as I believe they entered into the agreement knowing they would cancel, using our services to get them ahead. They were signed up for a 1 year contract and canceled 4 months in stating they could not afford us, yet several months before the client disclosed to me her business plans and how she wanted us to handle getting the word out. She cut her expenses and now she states she can't afford us.

    They owe me $1600.00 based on the signed contract. My question is can or should I sue, as they will continue to be in business even after they file for bankruptcy. Also does the court judgement stay attached to their business whether or not they file for bankruptcy discharge?

    I also read that you can sue once they've received their discharge. Is that true or only for certain cases?

    Any help would be appreciated.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Suing a Business Filing for Bankruptcy - Breach of Contract and Fraud

    You would normally want to sue before they file. If they file, you will either have to resolve your claim within the bankruptcy court or bring a motion in the bankruptcy court to allow your claim to continue in the trial court where you filed the lawsuit. We know nothing about the business or its assets, or the viability of your potential fraud action, so we're not in a position to tell you whether or not it makes sense to sue. If you successfully prove fraud, the resulting judgment should be nondischargeable - but it's anything but unusual for a business or individual to suffer a bona fide financial setback that renders them unable to afford a financial commitment that they previously believed they could pay.

    1. Sponsored Links
       

Similar Threads

  1. Replies: 1
    Last Post: 06-01-2011, 07:12 PM
  2. Legal Malpractice: Suing an Attorney of Breach of Contract
    By josephant3 in forum Malpractice Law
    Replies: 4
    Last Post: 01-26-2011, 07:42 AM
  3. Suing for Breach of Verbal Contract
    By dr0832 in forum Independent Contractors
    Replies: 3
    Last Post: 01-07-2009, 06:12 PM
  4. Business Disputes: Suing Another Company for Breach of Contract
    By eurekasakameeka in forum Business Law
    Replies: 1
    Last Post: 08-03-2008, 07:26 AM
  5. Business Issues: Suing Another Company for Breach of Contract
    By eurekasakameeka in forum Business Law
    Replies: 1
    Last Post: 08-01-2008, 07:00 AM
 
 
Sponsored Links

Legal Help, Information and Resources