Entirely Legal
Out of context: Reply #19
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- monNom0
Yeah, that's not how it works (leagally). A purchasing company gets both the assets AND liabilities. They can only have the liabilities removed through the bankruptcy process, which attempts to pay off the creditors from the assets available based on seniority, or to offer the creditors equity in a newly formed company that is unencumbered by prior debts (chapter 11). Essentially, in a chapter 11, everyone agrees to take a percentage loss in return for the possibility of making good on a new, unencumbered company.
Now that's not to say that they didn't fraudulently transfer the assets of the company to another company, while leaving the liabilities in place... essentially stealiing from the creditors, who have first rights to the assets. You'd have to hire a lawyer to try your case, and you're likely right at the bottom of the seniority totem pole. Might be worth talking to somebody about at least getting them in trouble.. not sure who that would be.
In the future get partial payment up front EVERY TIME. Best practice is no materials leave your hands until the full bill is satisfied, though we all know that can be difficult.