The Green Industry's Resource Center

sedona · #1 01-16-2001, 10:09 AM

hi all,
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

Scraper · #2 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.

lawrence stone · #3 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.

Eric ELM · #4 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.

KirbysLawn · #5 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....

moonarrow · #6 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 · #7 01-16-2001, 02:53 PM

Do not plan on receiving a dime.

Write off is the best you will see.

mowerman90 · #8 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.

Runner · #9 01-16-2001, 03:22 PM

Eric, Commited Suicide? I didn't think you were all that bad!

TJLC · #10 01-16-2001, 04:20 PM

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.