Please help...

[knewman]

Colorado --

I alos posted this to the genral litigation site as I am not sure where the answer lies.

84 days ago I entered into a contract to have replacement windows put in my home. The contract stipulated that the work would be completed within 30 days. The work was not completed and a second contract was drawn up stipulating that my price had been reduced by $1000 and that the work would now be completed by August 4th, 2001. This contract has alos been broken. I have not recieved the services or a refund wihich I have requested several times. The company owner has verbally admitted to lying to delay my request and advised me just this morning he is claiming bankruptcy and I that I am out of luck. He has $2300 of my money and I have lost an additional $700 in time off for missed appointments and interest that I would have earned on the funds. Is there any way I can get my money back? Can I take him to small claims court if he has files chapter 11.

 

[JETX]

Regretably, your situation is not terribly uncommon. Basically, you have loaned money to someone with an agreement that payback would be in labor and materials. And now that 'borrower' is threatening to file for bankruptcy.

And if he follows through on that threat, repayment of the debt (or a judgment) is halted pending final approval of the bankruptcy court.

Did you pay with a credit card?? If so, file a dispute with the credit card company.

Lacking a credit card payment, your only other recourse could be criminal. Talk with your local district attorney about possible theft or fraud charges against the contractor. Those charges can't be set aside by bankruptcy and, if accepted, can be used to assure repayment of your funds (either as a threat of charges, or as court ordered restitution).

Best of luck....

 

[knewman]

Unfortunately I paid with a check which he promptly cashed. Although your message is not what I was hoping for, I do appreciate you taking the time to respond.

I had some trouble accessing your FAQ links earlier. Could you tell me if I can proceed with small claims court until I recieve notice of bancruptcy? Will the courts notify me if he claims chapter 11?

 

[sanford64]

Please Help

I have been through this mill before.

First of all, do not accept his claim that he will file for bankruptcy. This claim is very common for debtors. File your claim in court (I do not know the threshold for small claims in your state).

Also, since you mentioned Chapter 11, I am assuming he is a corporation. (Individuals file Chapter 7 or 13). Sue both the corporation and the individual owner. Since you stated he admitted he lied to you to seek delays, you can claim he committed fraud. If he committed fraud, he loses the protection of a corporation and becomes individually liable. In this event, you can still go after the individual if the corporation does file bankruptcy. Individuals are always more hesitent to file for bankruptcy because of the credit implications.

If he does file for corporate and/or individual bankruptcy and asks for your debt to be discharged, you will be notified by the court. At that point you can request that the discharge be denied because he committed fraud in obtaining your funds.

If the discharge is denied, you can still have a claim against him beyond his bankrupcy filing.

If he does not list you as a creditor, there is a good website to research bankruptcies. It is www.pacer.psc.uscourts.gov. It will tell you if he has filed for bankruptcy protection.

Now comes the hard part, getting your money back. This is where I am in my process. At this point you need to begin to find his assets and wages to see if there is any recourse.