They owe me $20K I owe them $10K, they declared bankruptcy ugh!

[timidtim]

Jurisdiction

Delaware

We were doing reciprocal business with a company who went bankrupt. They owed us $20K and we owed them $10K when they declared bankruptcy. We also sent them to collections to no avail. We were giving them more business as a way to help them and with the idea that we'd break even or get paid. Now I have a debt attorney asking my company to pay them the full $10K but they are not ever going to pay us the full $20K. What can I do?

 

[army judge]

I suggest you spend a few dollars to hire an attorney.
If the company is filing BK, you're a creditor.
It's a bit complicated for this forum, but you have a few rights.
Talk to an attorney, ASAP.

 

[adjusterjack]

Now I have a debt attorney asking my company to pay them the full $10K but they are not ever going to pay us the full $20K. What can I do?

Unfortunately, their debt to you is likely to be discharged in bankruptcy but your debt to them is an asset of the bankruptcy estate and enforceable.

Sorry.

 

[despritfreya]

You have an offset claim. Go find a creditor bk attny and settle with the trustee.

Des.

@army judge

Despite Army Judge's enthusiasm below, I must qualify the above as maybe I am reading this wrong. I am assuming that OP is being contacted by the bk trustee or some attny related to the bk. My assumption may be wrong. However, if the company (corporation or LLC) filed a Chapter 7 and that case is now over, the offset concept should still work in a non-bk world since corporations and LLCs do not get discharges in Chapter 7 so technically the money is still owed to OP's company.

OP, I think we need a bit more info. Who is attempting to collect?

Des.

 

[army judge]

You have an offset claim. Go find a creditor bk attny and settle with the trustee.

Des.

LOL

I love you, Des.

I knew you'd arrive with succinct instructions, so I merely hinted at an answer to allow you to offer the PRECISE information the OP could use.