customer in bankruptcy

[ishium 80439]

Anyone have any experience with a customer who owes you money then files bankruptcy? After several late bills, phone calls and a registered letter I finally got a response from this guy that he is filing bankruptcy and I need to direct all further inquiries to his lawyer. Do I have any hope of actually getting paid for this? Will this be dragged out for months? It is a small amount of money ($175) but obviously I want it. I just wanted to see if anyone had any input before I contacted the lawyer.

Thanks.

[charlie b]

It is a question of fact as to whether he has filed already, or not. If he has, if the paperwork has in fact been submitted to the courts, it would be a violation of law for him to pay you now (i.e., in preference to anyone else to whom he owes money). In that case, the best you can do is to get your claim in amongst the other claims. So I would suggest that you send a copy of your invoice to his lawyer. Be advised, however, that the most probable outcome is that the courts will discharge his debt to you at the same time it discharges his debts to everyone else.

[cowboyjwc]

I agree with Charlie. You may see a reimbursment of pennies on the dollar, but I wouldn't count on it.

[macmikeman]

It also could be an outright fabrication, figuring you might take the bait and drift away.

[Buck Parrish]

Anyone have any experience with a customer who owes you money then files bankruptcy? After several late bills, phone calls and a registered letter I finally got a response from this guy that he is filing bankruptcy and I need to direct all further inquiries to his lawyer. Do I have any hope of actually getting paid for this? Will this be dragged out for months? It is a small amount of money ($175) but obviously I want it. I just wanted to see if anyone had any input before I contacted the lawyer.

Thanks.

Consider your self lucky it was a low amount.

I don't condone this . But, I have a freind that didn't get paid.
He told the owner their was a recall on the part that was used. Then he went and got it back. :wink:

[petersonra]

If indeed he has filed bankruptcy, you are an unsecured creditor just like all the other unsecured creditors and if you file a claim you will get paid in the same proportion as they do.

I don't recall that it costs anything to file a claim in a bankruptcy.

Chances are you will get nothing or a few pennies on the dollar at best.

[mikeames]

Put a lien on the house.... Probably more trouble than it worth.

[220/221]

Do I have any hope of actually getting paid for this?

.......No, sorry.

[charlie b]

I would not say that there is no hope. But I do suggest that you start thinking of it that way, so that if you wind up getting anything at all, it will be a positive surprise. I can see two ways that you might get paid. One is if the person is lying about having filed. It may be a trick to get you to stop trying. The other is if the person filed Chapter 13, instead of Chapter 7. The difference is that under Chapter 13, the person wants to pay off debts, but is overburdened, and asks the court to hold off creditors while they reorganize and get back on their feet. How much any creditor might eventually get is hard to predict. Chapter 7, on the other hand, wipes away almost all the person’s debts, and that would probably include yours.

[petersonra]

Put a lien on the house.... Probably more trouble than it worth.
over $175?

[electricalperson]

why do people get work done if they cant afford it? 175 dollars it must of been a receptacle or 2 installed or something simple.

[growler]

why do people get work done if they cant afford it?

People will take anything if it's free. They don't intend to pay for it. Best time to get things done if you are going bankrupt.

[Rewire]

Why didn't you collect when the job was done?

[BLACK4TRUCK]

I did a job for a lady out in Southampton, N.Y. At the end of the job there was a $10,000.00 balance due. She needed the final inspection to get more money from the bank.. no problem I got it inspected. There were problems with the survey and she could not get a CO. (That was a lie) She strung me along for 4 months with one problem after another. She was a recommendation from her son-in law who moved out to Las Vegas. I finally called him to find out about her constant money problems. He said she was doing just fine and was in the process of installing a new in ground pool. I drove out there and sure enough, she was getting a great big pool using MY money. We had words and I was asked to leave her property. Somehow a 6x6x10 foot railroad tie got thrown through her new front picture window. I was blamed and had to go to court. She testified I was owed the $10,000.00 and didn't pay me because of my "bad attitude. " After the trial, I tried to collect using the court transcript and she declared bankruptcy. I got no money, but beating her in court was a really good feeling. She was known in the town for running the contractor scam and not paying.

[electricalperson]

I did a job for a lady out in Southampton, N.Y. At the end of the job there was a $10,000.00 balance due. She needed the final inspection to get more money from the bank.. no problem I got it inspected. There were problems with the survey and she could not get a CO. (That was a lie) She strung me along for 4 months with one problem after another. She was a recommendation from her son-in law who moved out to Las Vegas. I finally called him to find out about her constant money problems. He said she was doing just fine and was in the process of installing a new in ground pool. I drove out there and sure enough, she was getting a great big pool using MY money. We had words and I was asked to leave her property. Somehow a 6x6x10 foot railroad tie got thrown through her new front picture window. I was blamed and had to go to court. She testified I was owed the $10,000.00 and didn't pay me because of my "bad attitude. " After the trial, I tried to collect using the court transcript and she declared bankruptcy. I got no money, but beating her in court was a really good feeling. She was known in the town for running the contractor scam and not paying.


thats horrible. did you give her a contract to sign before the work begun?

[BLACK4TRUCK]

thats horrible. did you give her a contract to sign before the work begun?

nope.. I never use contracts. It was brought out in court that I use a "handshake" to close a deal. That also played into my favor. Even a contract does nothing to protect you from ruthless people like her.

[c2500]

Remember, a Lien is only good if they sell the property...unless you go to court and force a satisfaction of the lien,

c2500

[Rewire]

nope.. I never use contracts. It was brought out in court that I use a "handshake" to close a deal. That also played into my favor. Even a contract does nothing to protect you from ruthless people like her.

It varies from state to state but in our state you can only recover attys fees if you have a contract also a contrct spells out how and when payments are to be made nothing can totally protect you but nothing makes you more vulnarable than not having a contract.

[Greg Swartz]

why do people get work done if they cant afford it? ...

People will take anything if it's free. They don't intend to pay for it. Best time to get things done if you are going bankrupt.

A family friend who had very good credit was planning a bankruptcy. He talked to the family lawyer who advised him to MAX out ALL the credit cards...
He also told the guy to pull out most of his cash from the bank... quite a while in advance... and with a good track record... to show that it had been done over periods of time... thus helping the look of needing bankruptcy.

He did a good thing for my family, but I don't condone his actions...
however, he quit his job, became an EMT (a medical EMT), and watched my Mom, full time, until she died.

So, in his case, it was completely pre-meditated. It amounted for a good thing for my Mom, but many credit card companies got stuck with his bills.

[iaov]

I have a customer right now who I made the mistake of getting in the posistion of owing them a lot less work than they owe me money. A couple of grand worth. Have had a hard time contacting them too. They both work for a GM dealership so I know they are probably not raking it in right now. Finally talked to HO at bar the other day. Told me they have not been in a hurry to have me come and finish up the details as they don't have the money. Assures me I will get the money,maybe just not real qiuck.Have not run into this problem before. Have a contractor who I've done buisiness for years who ows me money also. Less than a thousand. Never had this prob with him before. I think its a sign of the times. :confused:

[BLACK4TRUCK]

I have a customer right now who I made the mistake of getting in the posistion of owing them a lot less work than they owe me money. A couple of grand worth. Have had a hard time contacting them too. They both work for a GM dealership so I know they are probably not raking it in right now. Finally talked to HO at bar the other day. Told me they have not been in a hurry to have me come and finish up the details as they don't have the money. Assures me I will get the money,maybe just not real qiuck.Have not run into this problem before. Have a contractor who I've done buisiness for years who ows me money also. Less than a thousand. Never had this prob with him before. I think its a sign of the times. :confused:

the women who did me in strung me along for 4 months.. the time span to file a lien is 3 months.. some of the players out there know all the rules of screwing people because they have done it before :mad:

[ishium 80439]

This guy was shady from the beginning. Essentially he got red tagged for doing work on his home w/o a permit. I had done a few jobs for him before w/ no problem so I figured I would help him. I inspected the wiring he had run (about 5 outlets, 2 switches and a few lights, still open studs) and pulled the permit. A few months go by and checked on line and he had called in for the final w/o telling me. (No I don't know why I was waiting for the job to finish before billing him).

He is for sure filing as he gave me his attorney's contact info for all future inquiries. I wanted to see if anyone had any experience w/ this so I knew what to expect before I call him tomorrow. It sounds like I can expect to get brushed off.

I wouldn't file a lien for $175 and anyway it's been too long since I was at the house so my window has closed.

[mikeames]

Remember, a Lien is only good if they sell the property...unless you go to court and force a satisfaction of the lien,

c2500


Yes I understand but getting the money someday is better than not at all. If you have quite a few unpaid bills you can file a few liens at once. Who cares if its $175. If you have other unpaid bills throw it on the legal pile especially if you have legal friends/family.

[benaround]

And don't forget to keep track of the interest on that $175, when they go to sell the

property in 10 years it will be a good savings account.

[Fulthrotl]

Consider your self lucky it was a low amount.

I don't condone this . But, I have a freind that didn't get paid.
He told the owner their was a recall on the part that was used. Then he went and got it back. :wink:

that sounds like a recall to me..... i'll condone it.....:D

[Fulthrotl]

the women who did me in strung me along for 4 months.. the time span to file a lien is 3 months.. some of the players out there know all the rules of screwing people because they have done it before :mad:

there's lots of rules. in california, there is a rule that a worker can file a
mechanics lien for unpaid wages, against real estate. no court judgment
is required. takes about an hour and a half.

contractors can't lien that way, but employees can. there's several ways
that can be spun.... (insert evil grin here)

if a worker does labor on a structure in california, and the structure
is in escrow at the time, the title insurance company has to make sure their
are no outstanding labor claims against the house when it records.

if there are unresolved labor claims against the house, say someone who
does work on a residence as part of conditions between buyer and seller,
the title insurance company has to make sure the labor claim is paid out of
escrow.

IF THE LABOR ISN'T PAID OUT OF ESCROW, THE PERSON PROVIDING THE
LABOR MAY FILE A CLAIM AGAINST THE TITLE INSURANCE COMPANY, AND
THIS WILL TRIGGER A DEFAULT, WITH THE MORGAGE OF THE REAL ESTATE
IN QUESTION BEING PAID OFF, AND TRANSFERRED TO THE PERSON PROVIDING
THE LABOR.

all of that is in caps, 'cause it's important. i dated a title insurance
underwriter, and they had a claim like that come in.. one of the title
insurance officers screwed up, and an electrician who installed $300
worth of GFCI devices in bathrooms and whatnot ended up owning the
$600,000 morgage on a house, which seems like a fair trade for 5 GFCI's.

true story. heads rolled.