Discussion in 'Business Operations' started by sedona, Jan 16, 2001.

  1. sedona

    sedona LawnSite Member
    Posts: 11

    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
  2. Scraper

    Scraper LawnSite Bronze Member
    Posts: 1,656

    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.
  3. 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.
  4. Eric ELM

    Eric ELM Husband, Father, Friend, Angel
    Posts: 4,831

    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.
  5. KirbysLawn

    KirbysLawn Millenium Member
    Posts: 3,486

    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....
  6. moonarrow

    moonarrow LawnSite Member
    Posts: 223

    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
  7. Eng Mwr Guy

    Eng Mwr Guy Gravely Manufacturer
    Posts: 249

    Do not plan on receiving a dime.

    Write off is the best you will see.
  8. mowerman90

    mowerman90 LawnSite Bronze Member
    Posts: 1,491

    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.
  9. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

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

    TJLC LawnSite Bronze Member
    Posts: 1,308

    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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