A compny was administratively dissolved on July 1st after it forgot to file various required documents with our state's secretary of state. This company provides construction services to consumers. The company provided construction servcies to a consumer on July 10th which was after they were administratively dissolved. The consumer now contends that they do not have to pay the company because the company was administratively dissolved at the time services were provided.
Recommendation for the company and how can we collect payment from the consumer.
Hello. I provide the following to assist you.
Although the company was administratively dissolved, they still provided a service to the consumer. Therefore, I believe that the consumer would still be liable for the debt.
In many cases when a company is administratively dissolved for failing to provide documents, many times, the State Corporation Commission will reinstate the company if they provide the appropriate paperwork, retroactive to the time that the company was originally formed, therefore the consumers complaint would be then invalid.
Using the above as fact, I provide:
Recommendations for the company to collect payment:
1. Provide all required documents to reinstate the company
2. Contact the debtor to see if they are willing to make payment
3. Send a formal collection letter
4. Was there a contract signed, if so be prepared to present this document to the Court in any court proceeding
5. If the amount is under $7500, take them to small claims court
6. If the amount is above this, hire an attorney
7. Attempt mediation
8. File a Warrant in Debt. If judgment is ...
This solution provides a detailed explanation of how a company can collect funds from a consumer after they are administratively dissolved.