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I made a deposit on equipment and service installation and now business is closed. What can I do?

I made a deposit on equipment and service installation and now business is closed. What can I do?

businessYou are in a difficult position. If the business was properly incorporated, and conducted itself properly as a business, meaning it did not intermingle funds and the like, then the corporation is protected under what is called the “corporate vail.”

If the business was not properly incorporated, then you may sue the individual who induced you into providing the deposit.

If you can establish some kind of fraud, then you may also sue the individual for misrepresentation are for taking your deposit knowing full well that the business was going to close its doors. In addition to Civil remedies, if there has been a fraud to deprive you of your money, then you may also want to report the individual to the local authorities for investigation.

A practical way to pursue the recovery of your funds is to have an attorney send a demand letter to the individual who caused the collection of your deposit. A lot of times, a demand letter can resolve many issues without having to assert legal remedies such as the filing of a lawsuit.

While lawsuits can be very expensive, you may file a small claims law suit to recover up to $5,000.00 of your deposit. You may file a small claims lawsuit yourself to save you on costs. The small claims court system is tailored to address complaints by people who are not attorneys.