Legal Question in Bankruptcy in New Jersey
default contractor files chapter 13
we paid a contractor to buy and install a heater; he bought it but never followed through...we filed in small claims court and as he never even showed up we won the judgement hands down; in trying to contact him to pursue this further, we received a letter from his attorney saying he had filed for chapter 13 and we cannot take any measures against him as we could be in contempt...how do we proceed now, and how do we get our name on a list of creditors? the total debt is just uknder $1400. Also, can this be a criminal matter as well, since he has the heater--perhaps he sold it to someone else--
2 Answers from Attorneys
Contractor in Chapter 13
If the contractor filed for Chapter 13 protection and did not list you as a creditor, he is in a personal Chapter 13, not a business Chapter 13, and his business assets are not subject to the bankruptcy jurisdiction. Perhaps he operates his business under a corporate name.
I would go to your local prosecutor or police and make a complaint of either theft or fraud. On his conviction, the judge should order him to make full restitution to you.
Contractor in Chpt 13
You should file a proof of claim in the Chapter 13 case.Claims for return of a deposit of up to $1800 for the purchase of consumer goods or services that were notprovided or delivered is entitled to priority status. Anythingover $1800 would be a general unsecured claim.
In addition, the contractor may have a bond postedwith your state contractors board, if any. A claim againstthe bond may not be affected by the bankruptcy.
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