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I own a small welding shop which specializes in the welding of
injection mold tooling. I currently have a customer. Which is always
90 days on my books. Last week they informed me that everything from
the beginning of the week on was going to be paid c.o.d.. I currently
have a backlog of about 6,000.00 with them. Their accountant informed
that their is a possibility I would not be paid the back amount. I
picked some of their components for welding the end of last week.
Without these components they can't run certain jobs which are very
critical to them. Should I demand the back payment before I return the
jobs? Is that legal? I used to work at this company so I know everyone
on a personal level. They were bought a few years ago so the people
making the decisions are out of state. Any help would be greatly
appreciated.
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Subject: Bankruptcy law
From: ajoines@suscom.net (Dan)
Date: 9/21/2003 12:27 PM Pacific Daylight Time
Message-id: <c2c7afe6.0309211127.7b643a5@posting.google.com>
I own a small welding shop which specializes in the welding of
injection mold tooling. I currently have a customer. Which is always
90 days on my books. Last week they informed me that everything from
the beginning of the week on was going to be paid c.o.d.. I currently
have a backlog of about 6,000.00 with them. Their accountant informed
that their is a possibility I would not be paid the back amount. I
picked some of their components for welding the end of last week.
Without these components they can't run certain jobs which are very
critical to them. Should I demand the back payment before I return the
jobs? Is that legal? I used to work at this company so I know everyone
on a personal level. They were bought a few years ago so the people
making the decisions are out of state. Any help would be greatly
appreciated.
Is this company in bankruptcy? If so, they cannot pay you anything they owe
you dated retrospectively from the day they filed their petition. And you can't
demand it. If you have done some work for them since their petition, they
should pay for it. If they don't, why give them anything?
If they are in bankruptcy and listed you as a creditor, the bankruptcy court
should have communicated with you, telling you what to do about making a claim
on their assets. If you were not listed and you think they have filed, you can
find out by checking with your local bankruptcy court (to be found in the
federal court building).
Should they be in bankruptcy, the clerk of court will advise you how to become
involved.
"THE EXODUS CHRONICLES: Beliefs, Legends & Rumors from Antiquity Regarding the
Exodus of the Jews from Egypt" by Marianne Luban
You'll never think about the Biblical Book of Exodus in the same way again!
http://www.geocities.com/scribelist/Exodus2.html
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Dan wrote:
I own a small welding shop which specializes in the welding of
injection mold tooling. I currently have a customer. Which is always
90 days on my books. Last week they informed me that everything from
the beginning of the week on was going to be paid c.o.d.. I currently
have a backlog of about 6,000.00 with them. Their accountant informed
that their is a possibility I would not be paid the back amount. I
picked some of their components for welding the end of last week.
Without these components they can't run certain jobs which are very
critical to them. Should I demand the back payment before I return the
jobs? Is that legal? I used to work at this company so I know everyone
on a personal level. They were bought a few years ago so the people
making the decisions are out of state. Any help would be greatly
appreciated.
How about this? Tell them that with every order an extra $25 charge will be
placed on every order until the backlog is cleared.
Unless you were notified by the court, or an attorney, that the bankruptcy
would include your debt, they're most likely still obligated to pay you.
Depending on the type of bankruptcy, that does not necessarily absolve all
debts.
As a creditor, you would have had to have been notified that the proceedings
would involve you.
If you haven't been notified, they still owe the debt 100%.
Purely as a non legal opinion.
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Subject: Re: Bankruptcy law
From: "Richard" anom@anom
Date: 9/21/2003 5:02 PM Pacific Daylight Time
Message-id: <bkle78020k4@enews4.newsguy.com>
Dan wrote:
How about this? Tell them that with every order an extra $25 charge will be
placed on every order until the backlog is cleared.
Unless you were notified by the court, or an attorney, that the bankruptcy
would include your debt, they're most likely still obligated to pay you.
Depending on the type of bankruptcy, that does not necessarily absolve all
debts.
As a creditor, you would have had to have been notified that the proceedings
would involve you.
If you haven't been notified, they still owe the debt 100%.
Purely as a non legal opinion.
That is not correct. Even if you were not listed as a creditor, but know about
the bankruptcy and try to collect, you are setting yourself up for difficulties
with the bankruptcy court. Whether a party, parties or business files Chapter
7, 11 or 13, the petition operates as an automatic stay.
All debt collections or repossessions have to stop. The bankruptcy court now
is the entity to deal with everything while the bankruptcy is in force. This
OP here has to do what I previously stated--find out if there is a bankruptcy
and make a claim in the proper way. I would not do any more business with
these people until I knew what the status quo was. Let's face it--someone told
the OP he was probably not going to get the 6,000. If the delinquent company
hasn't filed yet, they may soon and then the OP won't even get paid for the
work done NOW. So YES, if the OP can ascertain for sure that they haven't
filed for bankruptcy yet--he should demand the entire amount before doing
anything else for this outfit. Or, at very least, demand payment for the
latest batch of work before returning it to them.
Disclaimer: I am not an attorney. This is for discussion purposes only and
should not be construed as legal advice.
"THE EXODUS CHRONICLES: Beliefs, Legends & Rumors from Antiquity Regarding the
Exodus of the Jews from Egypt" by Marianne Luban
You'll never think about the Biblical Book of Exodus in the same way again!
http://www.geocities.com/scribelist/Exodus2.html
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MarianneLuban wrote:
Subject: Re: Bankruptcy law
From: "Richard" anom@anom
Date: 9/21/2003 5:02 PM Pacific Daylight Time
Message-id: <bkle78020k4@enews4.newsguy.com>
Dan wrote:
I own a small welding shop which specializes in the welding of
injection mold tooling. I currently have a customer. Which is always
90 days on my books. Last week they informed me that everything from
the beginning of the week on was going to be paid c.o.d.. I currently
have a backlog of about 6,000.00 with them. Their accountant informed
that their is a possibility I would not be paid the back amount. I
picked some of their components for welding the end of last week.
Without these components they can't run certain jobs which are very
critical to them. Should I demand the back payment before I return
the
jobs? Is that legal? I used to work at this company so I know
everyone
on a personal level. They were bought a few years ago so the people
making the decisions are out of state. Any help would be greatly
appreciated.
How about this? Tell them that with every order an extra $25 charge
will be
placed on every order until the backlog is cleared.
Unless you were notified by the court, or an attorney, that the
bankruptcy
would include your debt, they're most likely still obligated to pay
you.
Depending on the type of bankruptcy, that does not necessarily absolve
all
debts.
As a creditor, you would have had to have been notified that the
proceedings
would involve you.
If you haven't been notified, they still owe the debt 100%.
Purely as a non legal opinion.
That is not correct. Even if you were not listed as a creditor, but
know about
the bankruptcy and try to collect, you are setting yourself up for
difficulties
with the bankruptcy court. Whether a party, parties or business files
Chapter
7, 11 or 13, the petition operates as an automatic stay.
All debt collections or repossessions have to stop. The bankruptcy
court now
is the entity to deal with everything while the bankruptcy is in
force. This
OP here has to do what I previously stated--find out if there is a
bankruptcy
and make a claim in the proper way. I would not do any more business
with
these people until I knew what the status quo was. Let's face
it--someone told
the OP he was probably not going to get the 6,000. If the delinquent
company
hasn't filed yet, they may soon and then the OP won't even get paid
for the
work done NOW. So YES, if the OP can ascertain for sure that they
haven't
filed for bankruptcy yet--he should demand the entire amount before
doing
anything else for this outfit. Or, at very least, demand payment for
the
latest batch of work before returning it to them.
All very good and valid points. However, we have no idea if the company is
in fact under bankruptcy or if they are just saying they are.
In these cases, this kind of a forum can only provide generic type
solutions.
If the company is indeed in bankruptcy, then the OP should at least attempt
to find out who the attorney of record is and work through them.
If the company wants to remain in business, they will work a deal out with
the supplier.
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ajoines@suscom.net (Dan) wrote in message news:<c2c7afe6.0309211127.7b643a5@posting.google.com>...
I own a small welding shop which specializes in the welding of
injection mold tooling. I currently have a customer. Which is always
90 days on my books. Last week they informed me that everything from
the beginning of the week on was going to be paid c.o.d.. I currently
have a backlog of about 6,000.00 with them. Their accountant informed
that their is a possibility I would not be paid the back amount. I
picked some of their components for welding the end of last week.
Without these components they can't run certain jobs which are very
critical to them. Should I demand the back payment before I return the
jobs? Is that legal? ...
You can telephone the bankruptcy court in the jurisdiction of the
customer and their automated voice docket system will enable you to
find out if a bankruptcy case has been opened.
Your decision on how much to charge for future business is up to you;
you will need to factor in how much you need their business. If they
do file for bankruptcy, their property in your possession can be
claimed by the trustee. But if they go out of business it probably
won't be worth much, either to them or to you.
I think your best bet is to negotiate some kind of deal to have them
pay down their debt. Of course if they do file bankruptcy, certain
payments within 90 days will be deemed a preference, and the trustee
will claim it back. (In this regard, operating COD is a good thing for
you. COD and most transactions in the "ordinary course of business"
are free from attack by a trustee.
The amount in question may not justify much in the way of (expensive)
legal advice; but you should know that you are treading on quicksand.
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Subject: Re: Bankruptcy law
From: lieffrens@hotmail.com (Lieffrens)
Date: 9/22/2003 4:51 AM Pacific Daylight Time
Message-id: <881bf057.0309220351.52845f12@posting.google.com>
You can telephone the bankruptcy court in the jurisdiction of the
customer and their automated voice docket system will enable you to
find out if a bankruptcy case has been opened.
In fact, I received a private message from the OP saying that the company was
not in bankruptcy. However, given that the subject heading is "Bankruptcy
law"......
"THE EXODUS CHRONICLES: Beliefs, Legends & Rumors from Antiquity Regarding the
Exodus of the Jews from Egypt" by Marianne Luban
You'll never think about the Biblical Book of Exodus in the same way again!
http://www.geocities.com/scribelist/Exodus2.html
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