Bathroom remodeling franchise mess

[portmon]

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

Hello,

We hired a bathroom remodeling company to remodel our bathrooms. We paid a deposit but didn't hear back from the company for some time. When we finally heard from them, we were told they had been "bought out by the parent company" (turns out the franchise went bankrupt) but the parent company would take over and everything would be worked out.

We were concerned since we hadn't met or sat down with anyone from the parent company (headquarters not near us) and requested a refund of our deposit so we could evaluate/renegotiate. The parent company told us they could not refund our deposit and that we'd have to get it from the (bankrupt) franchise by going through a lawyer.

The parent company, meanwhile, offered to complete our job for the fee we agreed upon with the franchise, including a credit for our deposit.

We need to get the work done and feel we cannot afford to lose our deposit (we're actually only being offered a credit and not a refund.)

If we proceed with the job (the parent company arranged for another franchise to do the work, though some of the details are of slightly less quality than the original deal), do we still have the right to pursue recovery of our deposit from the bankrupt franchise?

 

[BL]

If you proceed ,you would get a credit on the cost .

Make sure it's in writing , with the breakdown of the cost in the contract ,and a work completed by ( date ).

Otherwise you will need to consult an attorney on your options .

In the meantime check with your Local Office Of Attorney General - consumer affairs ,and see if they have any complaints on file with the bankrupt Co.

 

[portmon]

Thank you, BL, for your kind response. Yes we agree with you and do already understand the credit (and no refund) option offered to us, and already plan to get everything in writing (again).


My main question is about whether or not we are entitled to get our deposit back from the bankrupt franchise if we accept the "credit" from the new franchise (which also doesn't hold our deposit and encouraged us to go after the bankrupt one.)

If you proceed ,you would get a credit on the cost .

Make sure it's in writing , with the breakdown of the cost in the contract ,and a work completed by ( date ).

Otherwise you will need to consult an attorney on your options .

In the meantime check with your Local Office Of Attorney General - consumer affairs ,and see if they have any complaints on file with the bankrupt Co.

 

[Zigner]

Thank you, BL, for your kind response. Yes we agree with you and do already understand the credit (and no refund) option offered to us, and already plan to get everything in writing (again).


My main question is about whether or not we are entitled to get our deposit back from the bankrupt franchise if we accept the "credit" from the new franchise (which also doesn't hold our deposit and encouraged us to go after the bankrupt one.)

What makes you think that a bankrupt company could even repay your deposit?

 

[BL]

Thank you, BL, for your kind response. Yes we agree with you and do already understand the credit (and no refund) option offered to us, and already plan to get everything in writing (again).


My main question is about whether or not we are entitled to get our deposit back from the bankrupt franchise if we accept the "credit" from the new franchise (which also doesn't hold our deposit and encouraged us to go after the bankrupt one.)

If I'm understanding this correctly ,your credit would equal your deposit ?

As was stated , what makes you believe you could collect ?

 

[portmon]

If I'm understanding this correctly ,your credit would equal your deposit ?

As was stated , what makes you believe you could collect ?

BL,

I don't really know if we could or couldn't. That's why I'm here asking, I'm not sure what to believe. I'm not familiar with bankruptcy but I'm guessing there is some legal process where remaining assets are assessed and perhaps some creditor claims are settled in some sort of priority order. If that is the case, I would assume I'd need to make some sort of claim to even be eligible.

I realize it's possible the funds are spent, gone forever, etc. But if they are not, then I'm trying to understand what my rights are here. The parent company and new franchise say they don't have our deposit and we'd have to get it back from the bankrupt franchise. The bankrupt franchise agreed to a written contract, took our deposit, and didn't honor (broke) the contract.