We’re a social media marketing agency (registered in UK) and a couple weeks ago a client from USA signed up for our 3 month package. We didn’t sign any agreements, they just paid on the call ($5000). The stripe payment is from a card under personal name.

We started the package, I paid contractors and what not.

Yesterday the business owner sends an email saying

“I hate to do this but my attorney just told me that since I’m bankrupting my old company (with my old partner), I can’t engage in hiring anyone new for any reason until it’s complete and the government has within its authority to request it back.

So unfortunately, I have to ask to delay our partnership until January 1, when my attorney says that everything should be finalized and I can make decisions again on my own without intervention of the US government financial trustee.

Can you please return the funds to me for the time being and we will reinstate working together once the judge signs off on the closing of my old LLC?”

What do I do in this situation?