Can an amount owed to an independent contractors be included in bankrupcy?
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Can an amount owed to an independent contractors be included in bankrupcy?
I may have to close/shut down my business next month, if not I will be evicted by the landlord. I still owe independent contractors their fees for services provided; I owe 2 months fee. When close of business happens I have no way of paying them because of depleted business funds. I have used up all my personal finances to keep this business open. I owe bank and credit cards and family.
Asked on October 16, 2010 under Bankruptcy Law, California
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
All creditors including the independent contractors should be listed in your bankruptcy. When your bankruptcy is filed with the court, the court sends notice to all creditors you have listed in the bankruptcy. If you subsequently discover that you have omitted a creditor or creditors, you can file an amendment to your bankruptcy to include the additional creditors.
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