You certainly can try filing a lawsuit against them, but be advised that if they have or do file for bankruptcy, your case will be dismissed, all other collections efforts stayed, and the only compensation you will get (if any) will be what other unsecured creditors get through the bankruptcy process--which may be (if anything) from pennies to dimes on the dollar. Even if they don't actually file for bankruptcy, if the company is an LLC or corporation and is insovlvent (less income and assets than its debts), you are unlikely to recover your money. It may not be worthwhile to take action. (If it's not an LLC or corporation, you can try suing the owner[s] personally.)