alt Hacker NewsThe 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.
Not saying I know better but this contradicts what I heard from multiple collections companies with in-house legal - they all said suing would not be worth the ~$2,500 upfront fees and that the debtor would just vanish. The debt still exists so I'd love to think otherwise! Feel free to HMU if you have a specific lawyer/practice in mind ;