alt Hacker NewsThere's not any incentives to pay you when they're in China and there's no legal recourse from the US. Even in the US suing is often times not worth it economically and getting someone to pay after a win is painful too if they don't just file bankruptcy. Escrow or upfront only is the best way to go.
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doctorhandshake • today at 2:36 PM
This was a California company and contract, but your comment does apply to their situation with their client
The company was California-based, they were offering services in China. At least, that was my read. The contractor was also in California.
Honestly, this seems to be bad advice from their recovery services. Suing is 100% recommended here. There are plenty of lawyers that will work on a pro rata basis for account recovery in California. Sure, you lose a portion of your 35k; but you get more than you would have letting them get away with paying zero.
There's also laws in place to keep companies from "closing up shop" and opening in a new entity. It doesn't necessarily erase your debt (it can, but only in rare circumstances). And, even if they do get around it, it keeps them from pulling the same shenanigans going forward, in the state.