Legal Question in Business Law in Massachusetts

revocering debt from small inc business

I provided services to a small real estate co that was incorporated. After many years of doing business there was a 5 month period where monthly invoices went unpaid (totaling $1950.00) . Upon suspension of services and pressing for bills to be paid i was flatly told:

1st) I''ll pay in 45 days, then in 45 days

2) I'm out of business and there's no assets to pay you.

(NOTE: If you look up his business on the state of ma corporate filings database the owner has not dissolved his business.)

In the last year including this 5 months i had worked without a signed contract because of previous history with the client (i now know its a bad idea).

It was at the request of the owner to pay month by month. Live and learn.

What options do i have to collect this debt?

Can i take action against the owner personally?

Is there any value in going to small claims court?


Asked on 3/04/08, 8:07 pm

1 Answer from Attorneys

Re: revocering debt from small inc business

You can file in small claims against the business. You can also seek a claim of deceptive business practice against the business and the owner for telling you that they would pay in 45 days and the balance in 45 days, only to be told I have no more assets to pay you. Had he not told you he would have paid there may have been assets to attach.

I would send a 93A letter and then sue him and the business. Although between businesses there is no 30 day requirement, I would suggest you give him 10 days to pay before filing suit.

Read more
Answered on 3/04/08, 8:15 pm


Related Questions & Answers

More Business Law questions and answers in Massachusetts