QUESTION
If a company buys another company can they go back three years and collect money they say you owe?
Asked on Mar 07th, 2017 on Bankruptcy - Wisconsin
More details to this question:
When they have been paying you for a year already with no withholdings? They started this after they filed bankruptcy.
3 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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No, companies can't go back and take withholding that was missed. Each paycheck is subject to withholding separately.
Answered on May 24th, 2017 at 5:35 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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They can do so if their buy/sell agreement included the sale of the accounts receivable of the selling company. Generally such an agreement would include such a clause. Also, if the new company is in a Ch. 11 bankruptcy, they may feel they have a duty to collect all accounts.
Answered on May 23rd, 2017 at 9:17 AM
A whole lot of information is missing that would be needed to answer this question. What is the nature of this debt? Is there a court judgment against you?
Answered on May 23rd, 2017 at 9:17 AM