Our customer filed bankruptcy please HELP!!

[CenturyCarpet]

What is the name of your state (only U.S. law)? Florida

My question is as follows:

Back Ground: My husband and I own a small carpet restoration business which is incorparated. We mainly do multi-family housing (apartments). We aquired work from an apartment complex and started doing work in March 08. We received all payments for March but from April 1st to July 8, 08 I have outstanding bills of over $8000.00. We did stop doing work for the company and put a lein on the Apartment complex.

The Management Company/ Owner The Bethany Group, filed for bankruptcy, chapter 11 or 7 I'm not sure, the other day. The Bethany is out of California.

1) What should I do next to protect myself and my business?

2) Since they are located in California and I in Florida, Do they have to file bankruptcy in both states?

3) If they file Chapter 11 (reorganization) under Fl and/or Cal. law are we entilted to recieve all of our funds owed or just a portion?

Thanks in advance.

[CenturyCarpet]

Just found out that the Bethany Group has filed Chapter 11.

Again any information you can give me on my original questions, I would appreaciate it.

Thanks.

[racer72]

1. Ask for a relief from stay. Be prepared to contest any dismissal of moneys owed to you. You will probably need an attorney to do this, especially if the BK filing is in another state. For $8000, it may not be worth fighting for.

2. Nope. Bankruptcies are handled by the federal court system. The proper place for the company to file is at the federal court located near them.

3. Being as they filed chapter 11, you may get some or all of your money. Or you may get nothing. It will depend on the assets and health of the company. As stated above, it may cost more than you are owed to try to collect what you are owed. At a minimum talk to a local attorney. But if you do need to hire an attorney, plan on hiring one in the company's home state and expect it to cost quite a bit out of pocket.

[CenturyCarpet]

Racer, Thank you for your reply. I will consult with a lawyer soon.