Legal Question in Bankruptcy in North Carolina

I contracted with building contractor for sun room upgrades. Work took extensive time to complete --over a year because of poor follow up and the company filed bankruptcy. I had made 2 of the 3 payment installments before bankruptcy actions. For many months I heard nothing from the contrractor due to the bankruptcy actions. I did receive mail from the bankruptcy attorney's to notify me of the bankruptcy actions/status. Now I have received a final invoice from the owner who wants me to pay the last installment amount to a different company name than I contracted with. His company I contracted with went bankrupt. Now he is asking for my final installment payment to be made out to a different/new company that he is now operating. Am I legally liable for this last payment if the company went bankrupt? I do not feel comfortable writing a check out to a new company that I never contracted. thank you.


Asked on 10/04/10, 1:31 pm

1 Answer from Attorneys

Thomas Zimmerman Zimmerman Law Office

There is not enough information to give any useful reply. Assuming the work was complete and you fairly and correctly owe the money then the contractor that filed bankruptcy held an asset, that is, an account receivable from you. Your debt had to be disclosed. If it was a Chapter 7, the contractor, as an individual filer, had to exempt the asset. If he did so, he is entitled to collect it from you. If he did not exempt the asset, or is a corporate or LLC filer, then the trustee in Chapter 7 has the right to collect. If the contractor failed to disclose the asset, then the trustee can take action to revoke any discharge and collect the debt from you to pay general creditors. You should consult bankruptcy counsel who can look at the filings in the court and tell you the answers to all these questions. If you are willing and believe it proper to pay, you should call the trustee and discuss it with him. He may be in a position to take your money and relieve you of any further obligation. If you pay the new company, you are certain to be exposed to a double liability because your debt is with the first company or person who filed bankruptcy, subject to the rights of any Chapter 7 trustee. If the company or individual filed a Chapter 13 or Chapter 11, then the the old company may have a right to collect, but the new company would have to prove to me that it owns the debt.

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Answered on 10/11/10, 8:16 am


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