Q: How do I collect on a debt of the medical practice that is ceasing operations and will be filing for bankruptcy?
The practice owes my company over $4,300 for products and services (signage and installation). It is operating under a dba for a corporation under the lead doctor's name. The practice will be closing in a few weeks and continues to collect funds from current and past patients, but is trying to represent that since they are going bankrupt they will not be paying any of their bills.
I'm assuming that I need to file a claim in small claims court and want to ensure that I am taking the right steps.
A: If they list your debt in the Bankruptcy you should get notice of the 341 Meeting of Creditors. Depending on the type of Bankruptcy and any assets you may get something or you may not. You should at least attend the meeting and maybe have a consultation with a Bankruptcy lawyer in your area.
A: From the information you provided, it doesn't sound like the bankruptcy has been filed. If it has not been filed, you can continue to attempt to collect your debt. If you receive a notice of bankruptcy, that would stopped you from collection activity. However, it might be beneficial to meet with a bankruptcy attorney to review your options. Creditors do have some power even when a bankruptcy is filed.
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