Right to lien a corporation&#39;s bond
<p>If my company is dissolved and has filed Ch7 bankruptcy, does the company still have the right to lien the contractor's bond to recoup money owed? The contractor has ignored all requests for payment in the past year.</p>

<blockquote>
  <p>If my company is dissolved and has filed Ch7 bankruptcy, does the
  company still have the right to lien the contractor's bond to recoup
  money owed?</p>
</blockquote>

<p>No.</p>

<p>When the company filed a Chapter 7 bankruptcy, its right to the payment was automatically transferred to the bankruptcy estate by operation of law. The bankruptcy estate's right to collect that asset is controlled, in practice, by the Chapter 7 bankruptcy trustee appointed to the estate (for the benefit of the general creditors of the estate).</p>

<p>So, if those funds were collected, they would first go to pay outstanding claims in the bankruptcy and not to the company's owners, unless of outstanding claims in the bankruptcy were paid in full.</p>

<p>Also, in the case of a corporation, unlike an individual, a Chapter 7 bankruptcy doesn't actually discharge any of the debts. The corporation still owes them even after the bankruptcy is over. This is done so that people don't trade shares in failed corporations in order to get the tax losses.</p>

<p>Usually a Chapter 7 trustee will only pursue a claim like this if it is cost effective to do so, i.e. would produce a net benefit to unsecured non-priority creditors net of attorneys fees incurred to collect the debt, which it often isn't.</p>

corporate-law