I am not an attorney, am not qualified to give legal advice or to charge for legal advice. That being said:
Cable Companies usually don’t hire lawyers for small claims actions. You’ll either face an in-house corporate attorney who is weak in litigation, the local manager you dealt with, or they won’t show up at all. And they are easy to serve. Just the act of suing will motivate many Cable Companies to cut you a check. If they do pay you, be sure to drop the case. The Judge will look negatively upon someone who still sues for court costs after they got paid.
Bankruptcy may stop litigation, but it does not necessarily mean you won’t get paid eventually but if your debt is unsecured, and most subs’ debts are, you’ll likely only get a portion if you get paid at all. If you have a judgment already, you will be further ahead in line in the case of a bankruptcy filing. May be. But bankruptcies are expensive or can be and it is the Cable companies that have been doing it in the last several years. But Primes and Subs would likely take a different route.
The sole proprietors just disappear into the great sleaze scene. If you can’t find them, you can’t sue them and if you do find them, sue them and get a judgment, good luck collecting. They’ll probably use the Notice Of Judgment to fire one up.
Primes and Subs formed as Corporations on the other hand, can just shut down their corporation, leave whoever they owe holding the bag, and open a new corporation. Cost likely just 1 or 2 hundred dollars to form a new corporate entity. Some dubious operators will already have numerous corporations formed for the specific purpose of eventually stiffing all the vendors they owe and then getting a new set of victims with the replacement corporation. Shut down and reopening under a new flag is massively cheaper than bankruptcy, constructively erases the debts, and it doesn’t even necessarily affect the personal credit of the officers!
Re: leins
Member #: 22668
Registered: 3/29/2003
Posted:
107
Name:
Frank Anderson
Name:
Frank Anderson
Company:
Innovative Marketing Systems
Occupation:
CFO
Location:
Dallas, TX
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