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Chapter 7 for business question

I have a record company coming after me for a contract signed with them in 2006. From my perspective, the contract should be null and void since they filed for Chapter 7 bankruptcy in 2007 and were discharged from their debts in 2008. My understanding is that the LLC folded at the time of the bankruptcy. How can a company that no longer legally exists pursue a contract with that now dissolved company?

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Submitted Wed, 01/28/2015 - 17:33

There are many ways this could go, depending on additional facts. Simply because the company files chapter 7 bankruptcy, does not automatically mean that the company is closed. Also if your contract has a monetary value to it, then the bankruptcy trustee would've liquidated the contract and took the contract and could possibly have sold to someone else or could be attempting to collect on it themselves. You need to verify if the company is still in operation, because filing Chapter 7 bankruptcy does not automatically mean that the company is no longer in existence. Also if there's a monetary value to the contract, the bankruptcy trustee would have taken the contract and possibly attempting to collect on it themselves or could've sold it to a third party in which case that third-party can legally collect on the contract. Many contracts can be sold or obtained through a judicial process if they have a monetary value to them, this sounds like the most reasonable conclusion with the facts you provided.

Thank you for the response. From what I can tell they didn't sell the contract because it is the original parties involved that are coming after it. Or, if they did sell the contract, they are acting as if they didn't.

How would I determine if a company folded upon the discharge of their Chapter 7 bankruptcy filing? Do I just look to see if their LLC is still filed as active or do I reach out to the bankruptcy court directly that handled their case?

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