If my business did some work in the past for a property management company, why would a current bankruptcy of one of the owners be affecting us now?
Question Details: One of the owners is filing bankruptcy. We have gotten notices and are unsure why. We haven't done any work for them in a few years. Most recently we received paperwork on a motion for relief from stay and to abandon real estate. I guess my question is can't they take back what was paid to us a few years ago? They don't owe us anything now.
No, they can't get back anything paid to you years ago--while in bankruptcy, the bankruptcy trustee and/or court will reach back a few months to take back payments made shortly before the bankruptcy filing (on the grounds they may have been made while contemplating bankruptcy, in order to favor certain creditors by paying them out before bankruptcy), they do *not* and cannot reach back years. More than likely, there was either some mistake; or even more likely, simply ambiguous information--such as a list of vendors or contractors, without good records as to when they provided services--and they are sending out notices to everyone listed as a payee, until they develop better information. Try responding to the notice with information as to the last time you did work and/or were paid, in order to clarify that this does not involve you.