Contractor filed Chapter 7 (creditor, purchase, sell, company)

[Flamingo13]

Does anyone have any idea(s) on what if anything we can do? A home improvement contractor has our deposit (not a tiny one either) - never started work, wouldn't return our money and today we receive a notice from the courts that they have filed Chapter 7. The court date for them is Feb. 5 - is it worth it for us to go? I have a feeling we're SOL, I certainly hope not. Thanks for any tips.

[evilnewbie]

I would file a lien against the company as a creditor and collect as they sell their stuff away... get a lawyer asap...

[StoneOne]

Check to see if the contractor is incorporated or registered as an LLC. If not, file a lien against his personal property like cars and houses.

Second the advice about getting a lawyer asap.

[Stratford, Ct. Resident]

Check with your state attorney generals office. I know in my state, a fund is maintained(funded with contractor licensing fees) that pays victims of licensed contractors that "go bad".

[golfgod]

I know this answer is too late to do YOU any good, but it's directed at everyone else reading this forum. This is why you never, Never, NEVER!!! give ANYONE, particularly a contractor ANY DEPOSIT up front.

NEVER.

golfgod

[Flamingo13]

Addressing the first posts: we don't want to have to hire a lawyer and probably throw away more money.

Golfgod - I know people in the business in Pa. and that's how that works there - in this area, you don't get anything done without a deposit up front.

Stratford - I will check into this, thanks

[ferretkona]

Originally Posted by golfgod

I know this answer is too late to do YOU any good, but it's directed at everyone else reading this forum. This is why you never, Never, NEVER!!! give ANYONE, particularly a contractor ANY DEPOSIT up front.

NEVER.

golfgod

Well, you will not get anyone to work on your home with that logic.
Contact the state licencing office to find the laws per state.
What is common is 20% deposit to start to purchase materials, often with payments thru the progress for completion per stages.

Many states require a bond to get a licence. Of course some states barely require your signature to get a licence.

[teatime]

Originally Posted by ferretkona

Well, you will not get anyone to work on your home with that logic.
Contact the state licencing office to find the laws per state.
What is common is 20% deposit to start to purchase materials, often with payments thru the progress for completion per stages.

Yep, that's the way it is here, too. And I'd rather hire a small-scale contractor who is local, does quality work, and hires local, LEGAL workers but needs the 20 percent to start than a big ole company that sends a bunch of lower-paid illegal workers to your home and doesn't ask for any money upfront.