Should I accept partial payment if suit just filed but summons not yet delivered?

[KSkateApril]

What is the name of your state? UTAH

I am owed just under $2500 for rental income from a ski condo managed by a property management company. I have already terminated my contract with the company for various other reasons. They still owe me the rental income from previous guests in February and March and I have asked for payment several times.

I have gotten fed up with their evasive answers as to when they will pay, so this past Wed, April 6th, I filed suit in Small Claims court for the full $2392.90. This is made up of $1175.70 owed for February rental income, and $1147.20 owed for March rental income, plus the $70 filing fee.

I'm not sure if this was the proper way to go about this as the March rental income of $1147.20 is technically not due to be paid until the end of April. However, my fear is that the management company is going to declare bankruptcy in the next week and I'm going to get screwed out on all of it.

Now, I know for fact that the Small Claims Summons had not yet been served to the owner of the management company. However I did have contact with him today, Fri, April 8th, and he told me that he would be sending 1/2 of what was due for February (~ $587.85).

My questions are...
1). If (and that's a BIG IF) I actually receive the partial payment for February, should I try to cash the check?

2). Does an acceptance of a partial payment in any way prevent me from following thru with the small claims suit to collect the full amount (minus the partial payment), or would I have to re-file the suit?

3). What happens to my debt if the company declares bankruptcy BEFORE my day in court?


I should also mention two other things.

One is that I am not the only owner that is owed for Feb and Mar. None of the owners have been paid for these two months!

And the second is that in the Rental Agreement, it states "... The owner portion of the rental funds will be held in a property management trust account until such time as the funds are to be distributed. The account will follow the regulations of the Division of Real Estate, State of Utah."

I have found out that there are insufficient funds in this trust account to cover February's rentals, let alone March as well!

 

[JETX]

If (and that's a BIG IF) I actually receive the partial payment for February, should I try to cash the check?

Absolutely... especially considering your concerns of possible bankruptcy filing.

Does an acceptance of a partial payment in any way prevent me from following thru with the small claims suit to collect the full amount (minus the partial payment), or would I have to re-file the suit?

Unless you sign a release or waiver as to the unpaid amount, no.

What happens to my debt if the company declares bankruptcy BEFORE my day in court?

Same as after.... your claim (or judgment) will be 'stayed' (frozen) until the bankruptcy court rules on the petition. If they grant the petition for protection, your claim/judgment will likely be discharged.