Being A Creditor

The caller was a contractor for a business that went bankrupt and was asking if he is concidered a creditor or not.

Brian Dailey: Hello, welcome to The Law Show.

Paul: Thank you. Good afternoon. I have a strange case here where my son was doing contract work for an outfit. They went bankrupt. They owe him for past months services. They are going to close down their Michigan operation at the end of August. They continue to send him product for customer pickup and customer delivery. Where does he go for advice on something? If he a creditor and continue to be a creditor or what?

Brian Dailey: What do you say, Justin?

Justin Grove: Yeah, your son’s definitely a creditor. Is the Chapter 11 still ongoing?

Paul: He just filed a week ago to Monday.

Justin Grove: Okay. And did your son get noticed as being a creditor on the bankruptcy?

Paul: He found out from a customer pickup that the company went bankrupt. He didn’t even know.

Justin Grove: Yeah, he’s going to have to get involved in the bankruptcy because apparently they’re not listing him as a creditor. We’d have to pull the filing and see why he’s not in there. If he’s not on there, we’re going to have to file–you’d have to file proof of claim and get involved in the Chapter 11. Try to get any kind of payments that come out of that thing. Chance is you’re getting their payments on there.

Paul: Well, they owe 40 million; they have 23 in assets. So, where does that put the claim?

Justin Grove: Yeah, the amount of money that you’re going to get probably isn’t going to be a whole lot but it’s probably still worth pursuing and getting involved and at least getting your notices.

Paul: Sure. What about the continuance of sending him product for pickup and delivery? What about that? Now that they’re in Chapter 11, does that come in a different category?

Brian Dailey: Hey, Justin, could he hold on to that property as security for his death?

Justin Grove: Sure.

Paul: Well, I don’t–but, see, somebody else bought that though.

Brian Dailey: You should have your son call. Paul?

Paul: Yeah.

Brian Dailey: You should have your son give a call to Justin Grove on Monday, okay?

Paul: Yeah.

Brian Dailey: He can come in and sit down and talk with him. There’s no charge for the initial consultation. And we’ll guide him through this issue because in the Chapter 11, there are all kinds of issues that are unexpected that come up and the main thing for the creditor is to get his money and the main thing for the debtor in this case is employer is to make sure they don’t pay any of the money. All right?

Paul: Uh-huh.

Brian Dailey: And so Justin will be able to equalize some of that and help your son get through some of those issues and minimize his damage if there’s nothing to recover, and if there is something to recover, recover it for him, okay?

Paul: Okay, thank you.

Brian Dailey: Call Monday at 866-66-LAWYER. We’re going to continue answering all your legal questions at 866-66-LAWYER. That’s 866-66-LAWYER. Today is the day to call if you’ve got questions about bankruptcy or how to get rid of a credit card company harassing you at work or at home telling you that you owe them money and you know that you don’t or it’s so old that you really shouldn’t. You should check all those out anyway. Never ever make a deal with a credit card company to pay them until you see Justin Grove first. Call us at 866-66-LAWYER if you’ve got legal questions today. We’ll put you on the air and answer your legal questions. You can also e-mail them to questions@lawshow.com and we’ll be back after these few short messages.