Has anyone heard of a collection agency filing bankrupcy?

I hired a collection agency to collect some outdated business debts for my company, they collected the money, but say not that they can't pay me my part. I have a copy of the customers cashed check, is there any legal proceedings that I can follow? I am in KY and the collection agency is in FL. We are talking 9000.00, and they are trying to get me to settle with them for 10% of 70%, and telling me if I don't they will file. The company is in Fort Lauderdale, Adam's Johnson And Murphy. Do I call the bluff?

If you were a company like Capital One, I'd be laughing so hard I'd be crying. But, since you are a smaller independent just trying to make a business, I'm not laughing.

There could be several different ways to handle this:
Speak to a lawyer.
Sue them and see if they file BK.
Accept the offer but don't sign anything and dun them for the remainder.
Turn "them" over to a collection agency.
Or accept the offer, file complaints with the BBB, the AG etc. And chalk it up to a lesson learned.

They have a pretty bad BBB record, which you should have checked before hiring them. I'm listing the link for you.

Next time, check out a collection agency thoroughly before hiring them. (even more thoroughly than just the BBB)

"You" may be held responsible for what a collection agency does in your name. So, be careful when assigning debts.

In fact, in the future, you may be wiser just to sell the account to a collection agency rather than assigning the debt. You won't realize as much money, but....... as you are learning with this company, you probably will see less than if you had just sold it to them.

And, be thankful that one of the debtor's hasn't filed suit against the collection agency - and you.

yeah, they do it all the time. legally they don't have the authoirty to collect the money.

The check was drawn to you? Then definitely call a lawyer and explain your situation, I think he will happily take your case. Sounds to me like some shanenigans by the collection agency.

if the checks were written to you, call a lawyer. the collection agency seems kind of weird, i live in cali and out here your company only gets 50% so the guy could be legitly in debt. as long as the checks were written to you, you can file a suit.