Ask BBB: When a Company Goes Out of Business

7/7/2010

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Q: I paid for services from a company and I haven’t heard from them since.  The phone is disconnected and I think they may be out of business.  What can I do?

A: There are many steps you can take to recoup your losses if a company closes its doors.  BBB offers the following tips for dealing with this situation:
    1. Check with BBB to see if information in our report on the company may help you.
    2. Send a registered letter to the last known company address asking the owner to contact you. Even if the business is closed, the mail may be forwarded to another address. 
    3. Check with the landlord or property owner to see if the business left a contact number or address.
    4. Check with your City Clerk’s office to find the names of the company’s principals.
    5. If the business is regulated, look for information with the licensing agency.
    6. Find out if the company filed bankruptcy by contacting the clerk at the Bankruptcy Court.  If the company has filed for bankruptcy, you can file a claim there.
    7. If you locate the owner and they have not filed for bankruptcy, you are still owed the products or services you paid for. If you are unable to obtain a fair settlement with the business, contact the Arizona Attorney General, Small Claims Court, or seek the advice of an attorney.
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