QUESTION
What should we do if he offered cash settlement after he filed for bankruptcy?
Asked on Aug 28th, 2012 on Bankruptcy - Michigan
More details to this question:
Our builder filed bankruptcy after we won a judgement against him. We received a letter months later that the amount given to his creditors. We did not get anything because we are an unsecured creditor. Unexpectedly, he wrote us and offer to pay 1/3 the amount of the settlement. What is the motive on his part? Did one of his creditors who got about a 4 % back from the bankruptcy court found out he has hidden asset?
5 ANSWERS
Do you know what type of Bankruptcy your builder filed under? Did he file under chapter 7 or chapter 13? A successful bankruptcy will either discharge a debt with a few exceptions, or restructure payments without liquidating the assets of the debtor. In order to understand why he has contacted you for a settlement offer it would be helpful to understand whether his Bankruptcy was completed and what type of Bankruptcy it was. Don't accept your builder's offer until you are fully informed as to why he is making an offer to settle after filing for Bankruptcy.
Answered on Sep 11th, 2012 at 12:50 AM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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I wish I could read his mind. Report him to contractor's license board. If the bankruptcy is still pending you cannot take any actions to recover your funds. If it is over you may want to consider accepti ng his offer.
Answered on Sep 10th, 2012 at 1:23 PM
Chapter 7 Bankruptcy Attorney serving Clinton, MS
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Timothy Kevin Byrne Attorney at Law
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If the bankruptcy is over, I would cash the check. It is perfectly proper, but not common, for a debtor to pay on a dischaged debt.
Answered on Sep 09th, 2012 at 8:42 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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There is no way to determine his motives. As far as the bankruptcy - you might check the Bankruptcy Court's docket to determine status. Or, you can talk to the trustee assigned to his case. My best to you.
Answered on Sep 07th, 2012 at 5:08 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Hard to tell from the information provided but, I would GUESS that he needs to make a settlement in order to get back some license.
Answered on Sep 07th, 2012 at 5:03 PM