I have a business and we completed work for a company that has paid in full. A small effort was made to pay but there is still a balance due that is significant. The main person who owes the money decided to write two post dated checks that were bad. The company filed for bankruptcy, but we never received any papers informing us of this. We were able to get a judgement against the person who wrote the personal checks that were bad.
My question: is the judgement enforceable even though the company has filed for bankruptcy? Can this person show the court this payment was for a now bankrupt company, and not have pay, even though checks were written from his personal account?
Thank you. I live in Utah.
1 Answer from Attorneys
If only the company filed for bankruptcy you can enforce against the owner of the personal account on which the checks were written.
Make sure that it was not a bankruptcy for both the individual and his company. However, if you were not listed in the bankruptcy you can continue to collect. Yo may want to wait until when the discharge is granted, so you do not get added into the bankruptcy.