I worked for a small design agency that got stiffed on a six figure invoice this way. There was absolutely nothing they could do about it and the bankrupt found

I worked for a small design agency that got stiffed on a six figure invoice this way. There was absolutely nothing they could do about it and the bankrupt founder didn't even bother apologizing. It almost killed a 10 person company that the studio head had spent a decade building up from a sole proprietorship.