Legal Question in Bankruptcy in Florida
I am a Licensed General Contractor whom was a vendor for a residential home builder that filed Chapter 11 Bankruptcy. Without knowledge on my behalf I received payment for work completed as a vendor for the company 90 days before they filed bankruptcy. Basically they closed their doors on a Friday and told us that they filed Bankruptcy, then on Monday they opened up under a new name, it was buisness as usual. The previous buisness name owed me $15,000.00 which I am now involved in a class action suite for. I received a law suite today for $95,000.00 that was paid to me 90 days before the builder filed bankruptcy. As I stated above I was a vendor with the builder and the money was rightfully owed to me for work completed. Do I have any recourse and can I coutersue for legal fees. The company filed bankruptcy January 29th 2008 I received the case papers today Feb. 16, 2010 and the form was filed on January 1st 2010 in Broward County, I am from Pasco County.
2 Answers from Attorneys
You received what is known as a preference. Payments close in time to a bankrupcy can be recaptured by the bankruptcy estate and then go into the pot to try to pay all creditors.
The law of "preferences" is an ugly one for creditors, because the fact that the debtor owed you the money is not a defense. There are several several specific defenses available to you, and you should discuss them with an attorney who has particular experience in this area. You should respond to the lawsuit, but you should keep in mind that claims of this type are negotiated routinely.
I am also concerned about your allegation that the debtor filed a Chapter 11 on Friday and reopened under a new name on Monday. That's not the way Chapter 11 is supposed to work.
Is the debtor still in Chapter 11?
It sounds like you have a complicated situation. Given the amount at issue, you need legal counsel because the claim can be reduced to a judgment. By the way, the fact that you are in Pasco county and the suit was filed in Broward does not provide a defense, as the federal bankruptcy court has jurisdiction over people and companies in all fifty states, and sometimes overseas.
Robert Wilcox
(904) 281-0700
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