Client files for Chapter 7

[tracywalker]

have a large outstanding balance from a commerical client. Just got a letter from us bankruptcy court telling me when the meeting of creditors takes place ect. Is it worth my time to go or can I assume this money is long gone? I always heard chapter 7 discharges the debt?

 

[Guest]

g]http://www.youtube.com/watch?v=G6zM56Yq000g]

 

[hogjowl]

I've never experienced this, so I can't help you by answering your question. Hopefully somebody will come along with intelligent advice in a short while, but until then, don't let the stupid responses get you down.

 

[Ken Snow]

It all depends on how you define large. If its a grand or two you may not want to deal with it. If it is real money you can try to handle yourself or check with an attorney, or collection agency that handles these things on percent of collection basis i.e. 30-50%.

Ken

 

[Desk Jockey]

I always figure it's gone.

Had one last week she had paid $1200.00 of a $1700.00 balance and then filed Chapter 7, I was just glad I go the 12!

 

[randy]

I always figure it's gone.

Had one last week she had paid $1200.00 of a $1700.00 balance and then filed Chapter 7, I was just glad I go the 12!

Just don't spend it too quick, any debt paid within 90 days of a bankruptcy filing can be retrieved by the trustee. Literally they can sue you for the money that is yours and attorneys fees. For example when United Airlines filed bankruptcy they sued for return of all accounts payable that were paid within 90 days, literally thousands of lawsuits some for as little as $400. Our bankruptcy laws need reform, but not for the reasons most folks think of first.

 

[Desk Jockey]

That would be my luck!

I doubt that would be the case but if 90-days, I think I still have a few months to find out. :shock:

 

[XTREME1]

I am on my way out. How do you file for bankruptcy and will you guys sell me stuff right now on credit

 

[Lee Stockwell]

We've never retrieved a dime.

The last one was the parent company of Ryan's Steak House. Stung us for $3800.

They're still in business of course, and they keep a cash register at the front door. Their customers have to pay before they eat.

 

[tracywalker]

Ken, LOL big money to me is a couple of grand, but I know what you mean. I figured it is worthless to waste my time driving to bankruptcy court an hour away just to be told everything is being discharged. I was curious if others ever had luck in these situations. I spoke to a friend in another industry who had a similar money amount and they filed a complaint and was awarded a whopping $2! The business owner had a major health issue arise and I figure she went into tons of medical debt. Oh well nice lady and I feel bad for her, but dang I would like my cash too! :?

 

[duckster]

Secured creditors get paid first. There never is enough for unsecured and shareholders. Maybe you can buy some of their crap and make a profit on EBay.

Just a thought. Make sure you never sell to anyone who owned a piece of that company unless it is cash up front. Business failures as a rule repeat themselves.

Good for a tax writeoff this year but that I would guess is the only silver lining to to Chapter 7.

 

[BLewis]

Hey Lee,
Interesting comment. I had an outstanding invoice on one of the Ryans closed here. They called about 3 weeks before closing to get a copy of the last invoice (and I had the inside scoop that they were closely). Then two stores in Lex closed and I did recieve payment on that invoice!

Just goes to show they sure are going down a bad road since the new company bougth them out (Old Country Buffets or Buffets Inc) I guess when they started doing us old timers wrong and we started leaving back 5 years ago. There is one reginal left from the old gang out of the original 8 and 3 district mgrs left form the original 55 when I was there.

I use to service 3 in Cincinatti (All closed now) 2 in Lex (all closed now) and Owensboro and BGreen which are still open I just don't make the drive anymore after the wreck. I opened your Paducah store as gm and we used to gross 86k per week 15 years ago (when buffet was 4.99 lunch and 5.99 dinner) now I think it does in the mid 40s at todays prices.

I only clean one now and I don't hold my breath that it will stay open for any real period of time.

 

[brzelt]

Earlier this year I got stung by Dalton Carpets Inc. Fixed a marble floor they screwed up,
then poooof they were gone.

Got the bankruptcy letter and then a letters saying that they were approved and there
was not a dime to pay anyone... have a nice day.

 

[ACE]

Are you sure it’s Chapter 7 and not 13? I would talk to a collections lawyer about this. It will be worth the consult fee if only to learn how to avoid this happening in the future. You may be able to put a mechanics lien on the property even if they do not own it. Like I said; talk to a lawyer first violating collection laws might be costly. Have you thought about asking commercial customers that want credit terms to sign a personal guarantee?

 

[Bjorn]

Jan this year I did a water damage 5k guy kept saying the check was on the way then I got the letter

sucks 5k is a ton of money to me

 

[Mike Draper]

I would just slit my wrist if i were you.

 

[The Preacher]

did they sign your invoice on the agree to pay line??? if so, i say file a lien on the property as well, ya never know.

i've been lucky in biz, only had 1 bad check from a janitorial company i did work for bounce for $550.

 

[rick imby]

Secured creditors get paid first. There never is enough for unsecured and shareholders. Maybe you can buy some of their crap and make a profit on EBay.

Just a thought. Make sure you never sell to anyone who owned a piece of that company unless it is cash up front. Business failures as a rule repeat themselves.

Good for a tax writeoff this year but that I would guess is the only silver lining to to Chapter 7.

Tax Writeoff? Come on. You get to deduct the employee expenses and other variable costs but you do not get to deduct the amount of "margin" you lost.