This allows you to ask an expert a question. We have experts available to answer questions about: Uniform Commercial Code (UCC), Antitrust Issues, Construction Credit & Mechanics Liens, Legal Collections, Bankruptcy, and International Business.
Sample Question & Answer:
Answer: A company can still technically operate even if inactive. Likewise, you can sue and collect from an inactive company. From the customer’s standpoint, it raises questions as to whether or not the principals of the company can be held personally liable for a debt if it is not paid. Corporate formalities are being disregarded so there may be another source to collect from if debts are not paid. Creditors should also consider whether this company is facing solvency issues since it has not maintained an active status. This raises initial concerns over payment and whether any credit should be extended under the circumstances.