Legal Question in Bankruptcy in Texas

Contractor goes bankrupt

After paying a contractor to remodel and add to our house he files for bankruptcy. He was indicted by a grand jury and we were able to get $12000 from the crimal case. We however, were out $35000 originaly. We were able to receive a court ruling (Im not sure what the exact term is) for a $100,000 civil suit against the contractor but now according to the bankruptcy trustee we are only entitled to 3 percent of that amount becouse we are not a "secured creditor". Is there anyway of reversing this and becoming a secured creditor?


Asked on 9/25/00, 6:36 pm

1 Answer from Attorneys
Lawrence Maun Lawrence J. Maun, P.C.

Re: Contractor goes bankrupt

Generally no. However, it sounds like fraud was involved and you should object to the discharge of your debt by bring an adversary action in the bankruptcy case. If your debt is excepted from discharge, the debtor will still owe you the balance of the judgement. If the contractor eventually gets back on his feet you may be able to collect additional money.

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Answered on 10/24/00, 10:45 am


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