Castle Rock, CO asked in Bankruptcy, Business Law and Contracts for Colorado

Q: We paid a company 30k to build an online business. After two years, the company filed for chapter 7. Can we do anything?

The company was paid as private contractors. We waited 2 years for them to build the store they promised, but all they ever did was delay. Now they’ve filed for chapter 7 bankruptcy without ever telling us and we don’t know what, if anything, we can do legally to try and recoup our $30k. The company we paid is called Just One Dime Coaching LLC. I live in Colorado, but the company is in Texas.

2 Lawyer Answers
David Luther Woodward
David Luther Woodward
  • Bankruptcy Lawyer
  • Pensacola, FL

A: The First thing you do is find out where the matter is pending.

The Second thing you do is find a creditor's bankruptcy lawyer there.

The Third thing you do is follow his advice.

Good Luck


D. Mathew Blackburn agrees with this answer

D. Mathew Blackburn
D. Mathew Blackburn
  • Licensed in Colorado

A: You would have to reduce the cause of action to a judgement by filing a lawsuit and going through that process. This process will depend on the language in any contracts executed or if there was no contract the state procedural and conflict of law rules.

Once you have a judgement you would file a proof of claim in the Texas bankruptcy case. That would allow you to receive an allocable portion of any payment made to unsecured creditors.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.