Bankruptcy ?'s

Discussion in 'Business Operations' started by Newguy25, Feb 9, 2008.

  1. Newguy25

    Newguy25 LawnSite Member
    Messages: 120

    A buddy of mine is having trouble getting money from a company he did work for like $60,000. Question I have is this guy did this much work and the money is owed to him but the company just went bankrupt. Now what happens? Looked on the internet couldnt find an exact answer. So will this guy ever get his money now? Will it have to go thru lawyers? If they went bankrupt though. They have no money to begin with so how is the company gonna pay? I feel real bad for my buddy!!! What do you guys think??? Anyone know facts??
  2. JB1

    JB1 LawnSite Fanatic
    Messages: 5,904

    been there done that, he's probably screwed.
  3. pyrocare

    pyrocare LawnSite Member
    Messages: 96

    All of the assests of the business will be liquidated and the money will be payed out following the hierarchy of payments. Taxes, secured -----. I looked for a listing of the hierarchy of payments but couldn't find it. If they filed Chapter 7 it is possible that he will not get anything and has no recourse.

    If they filed Chapter 13 it is possible but it may be delayed

    CLARK LAWN LawnSite Silver Member
    Messages: 2,526

    i had a place go bankrupt after about two years i got about $250 on a $5000 bill. wasnt even worth the paperwork i had to fill out and file.
  5. retrodog

    retrodog LawnSite Silver Member
    Messages: 2,429

    Make sure he files a claim when the company goes to bancruptcy court. He can find out just by calling the county that the company is based in. I've been through the same thing, but on a lot smaller amount. Everyone that I have talked to usually ends up getting a monthly payment until it is paid off. Mine was in November, and I haven't seen any money yet, but received alot of paperwork. A few of my buddies had like between $2000 to $6000 and get between $30 to $60 a month from the companies bancruptcy people. Mine was for Movie Gallery, and was only for around $2000. Thats alot to me though.
  6. AintNoFun

    AintNoFun LawnSite Bronze Member
    Messages: 1,807

    unsecured credit, hes s.o.l. unfortunatly...
  7. Kortas

    Kortas LawnSite Member
    from Arizona
    Messages: 40

    Is it unsecured if he files a contractor's lien against the property?

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