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01-16-2001, 11:09 AM
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LawnSite Member
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Join Date: Jan 2001
Location: baltimore, md
Posts: 11
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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
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01-16-2001, 11:11 AM
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LawnSite Bronze Member
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Join Date: Feb 2000
Location: SE Pennsylvania
Posts: 1,650
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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.
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01-16-2001, 11:18 AM
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Banned
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Join Date: Jan 2000
Location: anthracite valley, commonwealth of pennsylvania Winter residence: Charlotte County FLA
Posts: 2,077
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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.
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01-16-2001, 11:19 AM
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Husband, Father, Friend, Angel
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Join Date: Dec 1999
Location: Chicago, IL USA
Posts: 4,808
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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.
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<img src="http://www.elmlawnsite.com/images/bannerpic.jpg" border="0" alt="ELMLawnsite">
^One of the lawns we mow
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01-16-2001, 11:30 AM
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Millenium Member
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Join Date: Jun 2000
Location: Just east of Charlotte, NC
Posts: 3,447
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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....
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01-16-2001, 11:38 AM
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LawnSite Member
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Join Date: Dec 1999
Location: Chatham, La. USA (northeast)
Posts: 223
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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
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Southern Lawn and Landscape
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01-16-2001, 03:53 PM
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Gravely Manufacturer
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Join Date: Jan 2001
Location: Appleton, WI
Posts: 249
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Do not plan on receiving a dime.
Write off is the best you will see.
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01-16-2001, 03:58 PM
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LawnSite Bronze Member
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Join Date: May 2000
Location: Spring Hill, FL
Posts: 1,246
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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.
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Ed Kreiling
Kreiling's Lawn & Landscape Service
Spring Hill, FL (West Central FL)
http://www.klawns.com
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01-16-2001, 04:22 PM
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LawnSite Fanatic
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Join Date: Jul 2000
Location: Flint, Michigan
Posts: 12,479
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Eric, Commited Suicide? I didn't think you were all that bad!
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Joe
Thank you, Dad - for always being the dad that you were. You truly are my hero. You always were.
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01-16-2001, 05:20 PM
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LawnSite Bronze Member
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Join Date: Jul 2000
Location: Port Charlotte, FL
Posts: 1,304
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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.
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