customer in bankruptcy

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ishium 80439

Senior Member
Location
Denver foothills via the Horn of Africa
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

charlie b

Moderator
Staff member
Location
Lockport, IL
Occupation
Semi-Retired Electrical Engineer
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.
 
Buck Parrish

Buck Parrish

Senior Member
Location
NC & IN
ishium 80439 said:
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.
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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

petersonra

Senior Member
Location
Northern illinois
Occupation
engineer
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.
 
charlie b

charlie b

Moderator
Staff member
Location
Lockport, IL
Occupation
Semi-Retired Electrical Engineer
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.
 
B4T

B4T

Senior Member
Location
Long Island, N.Y.
the jury said.. NOT GUILTY in less than 30 minutes

the jury said.. NOT GUILTY in less than 30 minutes

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

electricalperson

Senior Member
Location
massachusetts
BLACK4TRUCK said:
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.
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thats horrible. did you give her a contract to sign before the work begun?
 
Rewire

Rewire

Senior Member
Location
Lake of the Ozarks
BLACK4TRUCK said:
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.
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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

Greg Swartz

Senior Member
Location
Colorado Springs, Colorado
electricalperson said:
why do people get work done if they cant afford it? ...
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growler said:
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.
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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

iaov

Senior Member
Location
Rhinelander WI
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:
 
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