View Full Version : bankruptsy
01-16-2001, 10:09 AM
I am new to the forum, and this is my first post. I have a customer who owns a small office building that I maintain and he owes me over $600, I have been attempting to get paid from him for several months now. I just received in the mail that he is declaring bankrupt. Have any of you had this happen, do you know if i will still be able to get my money? Thanks
01-16-2001, 10:11 AM
You will have to wait for a court to decide. When they (the business) declare bankruptcy all their funds and assets are frozen. Then all the debtors petition the court for their money due. If not enough to cover all debts, amounts due are discounted.
01-16-2001, 10:18 AM
Since you are not a secure creditor you are SOL.
Don't not perform any more services unless cash in advance.
You could perform round up "drive bys" at his home site bi monthly but don't ever expect to see any of that $600.
01-16-2001, 10:19 AM
We had a customer that owed us for 2 months of mowing. He always paid us by check, but the last time we mowed that lawn, he walked out and gave us cash for 1 month and the next day he commited suicide. We were able to deduct that as a loss off of our income for that year. Talk to your tax person about this, since it doesn't look good for you to get your money from this guy.
01-16-2001, 10:30 AM
I think Stone used the correct letters SOL. Jumbo Sports still owes me $3500.00, being a service company I'm last in line, just got my SOL letter about 2 weeks ago. Move on....
01-16-2001, 10:38 AM
You might try going to the court house and filing a property lean, I know this worked for my son-in-law on an apartment complex that he maintained. and will get your name in the hat
Eng Mwr Guy
01-16-2001, 02:53 PM
Do not plan on receiving a dime.
Write off is the best you will see.
01-16-2001, 02:58 PM
I still have a Builder who has owed me over$1800 for the past 10 years. Best to chalk it up to experience, forget about it and move on.
01-16-2001, 03:22 PM
Eric, Commited Suicide? I didn't think you were all that bad!
I read in the front section of my Dome bookkeeping book that you can claim bad debts "if previously reported as income." I asked my accountant about that and he said forget it and move on.
01-16-2001, 04:24 PM
My friend had this happen to him. He kept inquiring about it. Now he recieves little by little for the amount owed. (very little) but he is getting paid on it!! Its going to take awhile for him to get it all, I'm sure how he did it. I'll have to ask him and let you know.
Eng Mwr Guy
01-16-2001, 04:33 PM
If you have been served with bankruptcy notification there are laws preventing any "pressure" tactics by people trying to collect. Anything beyond a single phone call could be used against you and deemed harrassment.
01-16-2001, 05:22 PM
you can kiss any thoughts of ever getting any money goodbye. I too was once an unsecured creditor and got nothing. It was only for a total of $42 with the tax, and i was surprised when i got a bankruptcy letter in the mail, but never saw a dime. Not much money, but it's the principle of getting screwed that will eat at you.
01-17-2001, 03:21 AM
Leins do work, but I think it might be too late if already served with the bankrupsty papers.
I had a guy owe me two months mowing for over three months late a few years back. He put his house up for sale that winter. I had a feeling I was going to get taken, so I filed a lien on the property for what he owed me.
Man was he ticked when the buyers called and told him the search came back with my lein. He could not sell the property till I was paid and I released the lein. He was hot when he gave me the check and I signed off the lien.
Too bad I did not see it coming this year when a woman did same thing to me for one month's billing. I trusted her too much I guess, she always paid the week after billing for two years.
Also, I am no accountant, but, YOU MOST SURELY do take off bad debts since they are part of your invoicing and your gross income. Now you cannot get anything for your time, but your expenses are still expenses. Make sure you take off the money billed from your gross income that you billed out! Some might forget to show it and pay tax on money you did not get. This has to do with accural and cash accounting methods.
[Edited by Skookum on 01-17-2001 at 03:27 AM]
01-17-2001, 07:51 AM
i had a lady lasy year owe me for a couple of months worth of cuttings, one day she tells me she is in the middle of a divorce and is not getting any money for her ex and cannot pay me. at tax time i told the accountant that i could not collect this money and she wrote it off on my taxes. i think this is the best route to take in your situation.
01-17-2001, 11:00 AM
hey thanks for all the replies, i guess it just shows that you need to be careful who you work for, although im not sure how this could have been avoided
01-17-2001, 03:47 PM
I like the lien ideas I would've been smilling while I got handed my check.
08-01-2001, 10:23 PM
Instead of posting a new thread i thought i would just post this here. Ok here it goes,im a little hot so i'll try to make since. The rumor mills have it one of my big clients with 2 large apartment complexes is going under, the rumor is they are fileling bankruptsy monday morning. They owe me 10+ thousand dollers so for a solo operater that's big money. Ok so now i'm going to throw another wrench in the chain MY WIFE WORKS FOR THIS COMPANY . I'm going to talk to a lawer first thing in the morning to see what i should do, but i thought i'd see what words of wisdom the other pros had for me thanks Bobby
08-02-2001, 12:10 AM
Forget it... If you don't have a secured interest in anything, you won't get a penny...
Good friend of mine declared bankruptcy last year, to the tune of 122,000$ of debt.
He kept almost everything too!! Also, he just had a new roof put on his house, and owed the contractor 6 or 7k for the job. He put that on the bankruptcy, and the contract lost out. How can you have a secured interest in a roof? Let alone a lawn. =p
08-02-2001, 01:35 AM
I had a lady whom insisted on paying cash
she was out of town for three month and came back and gave me a little then the next thing I new it was snowing and had to go by and plow drive way and found out she had moved
she owed $600
to late for leins or anything
she lost house to bank and the IRS
the new owners bought the house for $60,000
it was worth $420,000
I told her i would buy it for $60,k
but back to it couldn't even write it off she was not on any records
08-02-2001, 07:43 PM
I would talk to a lawyer as well - many give the first hour of the first meeting free - you can see where you stand for free.
And at least, DEMAND THE $$, and stop doing anything there until you get some sort of payment.
Your wife working there sounds like a gift, not a hinderance. Can she put any pressure on the money man to get you the $$? Can she cut a check for you?
You've gotta play hardball now, and pull out all the stops. :angry:
08-02-2001, 10:07 PM
To Sedona: Most likely you have lost the money, but it may be worth it to go through the motions (Registering your claim, going to the creditors meetings, etc) in order to find out what is involved in the process. If you have the time, I would highly reccomend that you do this, as you get to see the process in action, and you may learn how to protect yourself in the future.
To Bobby B: If your wife works at the company and somehow gets a cheque to you, most likely you would have to give the money back. It would be considered a bad faith payment on the part of the company, to the detriment of the other creditors. Sucks big time, and it may actually be criminal(?) to have her do it (if she even can).
Been through bankruptcy from both sides. It is ugly all around. Do things by the book and you may get something.
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