Dissolve the company to avoid paying liabilities?

[ideazonepd]

I did some design consulting for a client last year. He kept stretching me along on paying his invoices. I sent another reminder to him today, and he responded that his business was closed and that I was lucky to get what I got.

My question is: can a company simply terminate the business to avoid paying oustanding liabilities? Or do they need to go through some sort of bankruptcy declaration to dissolve them?

I am in Colorado, my client is in Texas.

Thanks,

MylesWhat is the name of your state (only U.S. law)?

 

[HomeGuru]

I did some design consulting for a client last year. He kept stretching me along on paying his invoices. I sent another reminder to him today, and he responded that his business was closed and that I was lucky to get what I got.

My question is: can a company simply terminate the business to avoid paying oustanding liabilities? Or do they need to go through some sort of bankruptcy declaration to dissolve them?

I am in Colorado, my client is in Texas.

Thanks,

MylesWhat is the name of your state (only U.S. law)?

**A: a company can basically go out of buisness or disolve without filing BK.
Depending upon their legal entity, they must notify the state regarding certain filings.