What documents do I need to collect my commission from a bankrupt company?

Full question:

I am owed $1,000.00 from a company I used to do work for and had agreed to sell product for after I left. I was to be paid 5% commission for parts sold. I sold these parts to a company I do consulting work for. My old company is now bankrupt but, the company I sold these parts to owes them for parts they received from my old company. What type of documents do I need to give to the company that received the parts so they can withhold the $1,000.00 that is owed me before they pay the old company for the parts? The company is willing to do this for me as long as they are not going to have a legal problem with the bankrupt company.

  • Category: Contracts
  • Subcategory: Assignments
  • Date:
  • State: Minnesota

Answer:

In legal terms, an assignment is the transfer of a property right or title to someone else, usually through a written agreement. Unless specified otherwise, an assignment typically transfers the entire interest in the assigned item. Your contract will dictate your rights regarding the assignment or transfer of your right to collect payment. It’s important to document any agreements in writing, as oral contracts can lead to evidence issues in case of disputes.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Generally, a company cannot make you pay back money you earned unless there was a specific agreement stating you must return funds under certain conditions. If you received a bonus or commission based on specific performance metrics, and you did not meet those, they might have grounds to reclaim that payment. Always check your employment contract for any clauses regarding repayment. Legal advice may be beneficial if you are unsure about your obligations.