Client made off w/o paying for service

Edwards Finance > Loans

Q. A client of mine filed bankruptcy and closed his store. He currently owes me $125.00 plus about $4.00 interest for services I rendered to him. I've emailed and called him but no contact. The only way I found out about his bankruptcy was from a person that use to work with him. Now I can't even get in touch with that person. Do I have any options for retrieving payment from this person?

A. Upon filing bankruptcy, there is an automatic "stay" on all collection activity without order of the bankruptcy court. You are deemed to know this as soon as you heard of the bankruptcy. Even attempting to contact the debtor without court approval may be a violation of the stay order and contempt of court, subjecting you to fine and imprisonment. $125? That's all? Kiss it goodbye. It isn't even worth your time looking at the court files to see IF he really filed bankruptcy. Very likely you will have to go through the bankruptcy court to have any chance at payment. (ObDisclaimer: I am not a civil attorney, and this is not advice!).

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