My customer went out of business — can I still collect my invoice?

When a customer goes out of business, your collection options depend on how the business wound down. A formal dissolution through state procedures means the company was supposed to pay known creditors before distributing assets to owners. If you weren't notified and they distributed assets without paying you, you may have a claim against the entity or in some cases against the owners personally. File a creditor claim with the dissolved entity's registered agent or the attorney handling the wind-down. Most states have a short window (often 90-180 days after dissolution) for creditors to submit claims.

Bankruptcy changes everything immediately. An automatic stay stops all collection activity. No calls, no demand letters, no suits without bankruptcy court permission. You must file a proof of claim in the bankruptcy case to participate in any distribution to creditors. Check the bankruptcy court's electronic filing system (PACER) for the case number and proof of claim deadline. Most unsecured creditors (like unpaid service invoices) get pennies on the dollar in bankruptcy, but filing the claim is necessary to receive anything at all.

If the business simply closed without formal dissolution or bankruptcy (just stopped operating and disappeared) you can still sue the legal entity for a judgment. Collecting that judgment against an entity with no assets requires finding assets. Investigation may turn up bank accounts, equipment, receivables, or other assets still in the entity's name. If owners pulled assets out of the company before creditors were paid (fraudulent transfer), you may be able to pursue those assets, but this requires an attorney and a willingness to litigate.