Results 1 to 12 of 12
  1. #1
    Join Date
    Feb 2011
    Location
    Grand Prairie,TX
    Posts
    151

    removing equipment-chapter 11 question..

    we did an install at a business and had problems getting them to pay. almost 2 months later they claim they are/where in chapter 11 bankruptcy court.
    on our signed invoice it states that" if payment is not made as agreed ,seller can remove said equipment, and shall not be responsible for any damage resulting from removal therof"

    the only thing I'm not sure of legally is does that still stand if they are in chapter 11 or not and does that depend on if they knew they were in chapter 11 when we did the work and didn't tell us or not.

    anyone?

  2. #2
    Join Date
    Jul 2001
    Location
    Canada
    Posts
    1,810
    With the STRANGE laws in Texas pertaing to CHAPTER 11 , I would go see a Lawyer for real advice.

  3. #3
    Join Date
    Dec 2010
    Location
    texas
    Posts
    333
    My invioces state the same thing and from what my attorney has informed me is as long as they sign the invioce on both of the signature lines until payment is made in full the equipment is not thier equipment it belongs to me. So basically you are loaning the equipment to them. But i would double check with your attorney first. Have they payed anything at all.

  4. #4
    Join Date
    Feb 2011
    Location
    Grand Prairie,TX
    Posts
    151
    they haven't paid anything.
    but yeah. were checking with an attorney.
    just wanted some of y'all s thoughts.

  5. #5
    Join Date
    Jun 2010
    Location
    Philadelphia PA
    Posts
    2,190

    When did they file chap 11?

    If they filed after you did the work then you are an unsecured creditor and if you want to recover you better scoop up your equipment. Better to seek forgiveness after the fact then permission before!

    If they filed before you did the work, two things come to mind
    1. your invoice goes to the top of the list OR 2. by with holding that important piece of information sounds like fraud or theft by deception. Now in some places a local prosecutor would be on that. Places like our big city with big problems they DA could care less.
    Your call but I would scoop up the outdoor unit and recover something. Without the benefit of legal advice I think the reasonable person doctrine would be in effect.
    You have got to learn from other people's mistakes! Because God knows you don't live long enough to make them all yourself !!!!!!!!

  6. #6
    Join Date
    May 2004
    Location
    Austin, TX
    Posts
    1,733
    If they filed before you did any work, you need to let the bankruptcy court
    know they are not paying their bills as they had agreed to in their filing.

    If they filed after you did the work, answer is bad.

  7. #7
    Join Date
    Jan 2004
    Location
    Lancaster PA
    Posts
    67,874
    With the right to protect life, or property laws Texas has. I wouldn't be to quick to go and try and take the equipment back.
    Contractor locator map

    How-to-apply-for-Professional

    How many times must one fix something before it is fixed?

  8. #8
    Join Date
    Nov 2006
    Location
    Southeastern Pa
    Posts
    18,223
    Quote Originally Posted by ericb45696 View Post
    we did an install at a business and had problems getting them to pay. almost 2 months later they claim they are/where in chapter 11 bankruptcy court.
    on our signed invoice it states that" if payment is not made as agreed ,seller can remove said equipment, and shall not be responsible for any damage resulting from removal therof"

    the only thing I'm not sure of legally is does that still stand if they are in chapter 11 or not and does that depend on if they knew they were in chapter 11 when we did the work and didn't tell us or not.

    anyone?
    Regardless of the previous discussion about who can give legal advice, you need to call your lawyer first, bub, and get the lowdown.

    Everything can change under the direction of a court in a bankruptcy filing. Have your attorney check to see if they have filed, when that was, and what your options are. Case closed.
    [Avatar photo from a Florida training accident. Everyone walked away.]
    2 Tim 3:16-17

    RSES CMS, HVAC Electrical Specialist

    AOP Forum Rules:







  9. #9
    Join Date
    Feb 2011
    Location
    Grand Prairie,TX
    Posts
    151
    so we went and met with them and some lawyers today and turns out they filed back in 2009. so now we have to pay a lawyer to get our $$$, but it's a sizable sum so worth it.
    The owner hates getting involved with lawyers but what else could we do really.

  10. #10
    Join Date
    Nov 2006
    Location
    Southeastern Pa
    Posts
    18,223
    Good thing you checked.
    [Avatar photo from a Florida training accident. Everyone walked away.]
    2 Tim 3:16-17

    RSES CMS, HVAC Electrical Specialist

    AOP Forum Rules:







  11. #11
    Join Date
    Feb 2006
    Location
    Atlanta,GA.
    Posts
    874
    file a lien against property and sue in small claims if under whatever limit isallowed in your jurisdiction usaully 5000 dollars and if you use and pay lawyer recoup legal fees

  12. #12
    Join Date
    Jun 2005
    Location
    Winston-Salem NC
    Posts
    1,133
    I might be strange, but I either do work for folks on a handshake, or I require a deposit that covers at least all of the equipment and supplies for the install, and maybe a little of the labor.
    I would consult a lawyer. As if you take stuff the government has seized in a bankruptcy proceeding, then you are stealing from the government, and they get a might peeved at that.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Comfortech Show Promo Image

Related Forums

Plumbing Talks | Contractor Magazine
Forums | Electrical Construction & Maintenance (EC&M) Magazine
Comfortech365 Virtual Event