What is the name of your state? Indiana
I own a sole proprietorship that I am closing down and filing chapter 7. Fortunatly, most all of the debts are not business related as I was able to keep up with the business bills in one way or another, and I guess that this was one of the ways. My concern is this; I was given a 9000.00 down payment in September of 2004 to provide and install a staircase that had a total bid of 25,000. The estimated install date was in late December. I was going to fabricate most all parts myself but got a contract to build a custom kitchen that was a "rush" job. I decided that I would use a local supplier to provide the parts needed for the staircase. In the meantime, in order to keep things running I used the 9000.00 down payment to pay the current bills thinking I would have enough money to cover the stairparts from the tail-end of the kitchen job, the classic "rob Peter to pay Paul" routine. Unfortunatly for me, I bid the kitchen wrong and there was no money to be had. The company that was to provide the stair parts did in fact do so with the agreement that they would be paid when I was finished with the stairs. As I had no income, the contractor was nice enough to agree to pay me and my help a weekly wage until finished and then one lump sum when finished. Then the problems started. It was an extremly difficult staircase and it ended up taking almost 5 times longer to complete as expected for various reasons. As it ends up, the job is finished but there is no money left to pay my supplier. Will or rather can I be charged with embezelment and fraud by filing chapter 7? Any advice will be appreciated. Thank You.
I own a sole proprietorship that I am closing down and filing chapter 7. Fortunatly, most all of the debts are not business related as I was able to keep up with the business bills in one way or another, and I guess that this was one of the ways. My concern is this; I was given a 9000.00 down payment in September of 2004 to provide and install a staircase that had a total bid of 25,000. The estimated install date was in late December. I was going to fabricate most all parts myself but got a contract to build a custom kitchen that was a "rush" job. I decided that I would use a local supplier to provide the parts needed for the staircase. In the meantime, in order to keep things running I used the 9000.00 down payment to pay the current bills thinking I would have enough money to cover the stairparts from the tail-end of the kitchen job, the classic "rob Peter to pay Paul" routine. Unfortunatly for me, I bid the kitchen wrong and there was no money to be had. The company that was to provide the stair parts did in fact do so with the agreement that they would be paid when I was finished with the stairs. As I had no income, the contractor was nice enough to agree to pay me and my help a weekly wage until finished and then one lump sum when finished. Then the problems started. It was an extremly difficult staircase and it ended up taking almost 5 times longer to complete as expected for various reasons. As it ends up, the job is finished but there is no money left to pay my supplier. Will or rather can I be charged with embezelment and fraud by filing chapter 7? Any advice will be appreciated. Thank You.