If I just closed our business and have several clients that have outstanding balances, are we still entitled to collect the money they owe us that we paid out of our pocket?
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If I just closed our business and have several clients that have outstanding balances, are we still entitled to collect the money they owe us that we paid out of our pocket?
Asked on August 4, 2015 under Business Law, New Jersey
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
The fact that your business has been closed does NOT prevent you from collecting the amounts owed to you for each outstanding balance by your clients.
You can sue each client for breach of contract account stated. Your damages (the amount of monetary compensation you are seeking in your lawsuit) would be the amount of each outstanding balance plus interest.
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