What to do if my debt management company went out of business without refundung to me my initial deposit of $571?
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What to do if my debt management company went out of business without refundung to me my initial deposit of $571?
Meanwhile, they had turned the account over to another company to handle until I fulfilled my obligations. What avenues are opened to me to try to recover my deposit?
Asked on December 31, 2012 under Bankruptcy Law, New York
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
If the debt management company was not a corporation or an LLC (limited liability company), you could sue the owner(s) personally for the money. However, if it was (as is most likely) a corporation or LLC, you could only sue the company itself for your deposit; and if it is out of business and has little or no income or assets any more, you are highly unlikely to be able to recover any money from it.
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