Well This Sucked....

JumboJack

I did some work for a kitchen and bath remodeling company last year as a sub,mostly framing.They got me a decent amount of work,about 20k...
They have owed me about 2 grand for some time....Just got a letter letting me know they are out of business and can't pay any of their debts...

__________________
in texas with framing and cornish people will do it for 3.00 a foot. What do yall think about that? Just laber

480sparky

Did your contract with them include a "Personal Guarantee of Payment"?

What type of company were they? Sole Prop? LLC? S or C Corp? Are they filing for bankrupcy?

The letter may just be a scent to throw you off their trail, too.

__________________
Site : the area or exact plot of ground on which anything is, has been, or is to be located.
Sight : The power or faculty of seeing; perception of objects by use of the eyes; vision.
Cite : To mention in support, proof, or confirmation; refer to as an example.

JumboJack

It's a corp.Not if it's S or C...It would be like getting blood from a turnip.
They are for sure gonzo..
It's not enough for me to get an attorney and risk loosing.But it still sucks becuase I have so little money coming in right now...

__________________
in texas with framing and cornish people will do it for 3.00 a foot. What do yall think about that? Just laber

480sparky

That's why I started requiring "Personal Guarantee of Payment" forms to be signed by companies, businesses, etc. It gives you an individual (or more) to go after if the company goes under.

Most are willing to sign one because they want the work done. If they don't, I explain why I require it.

__________________
Site : the area or exact plot of ground on which anything is, has been, or is to be located.
Sight : The power or faculty of seeing; perception of objects by use of the eyes; vision.
Cite : To mention in support, proof, or confirmation; refer to as an example.

simplejack

"out of business" doesn't mean out of money...just prepare to get in line if they go Bankrupt, to collect with possibly many others... you may not end up with your $2,000 but you'll get something if you go through the hoops.

Make certain you have plenty of records to show agreements costs pictures and whatnot!

...Maybe write them a strongly worded letter stating that you want your money, either through bankruptcy negotiations or through small claims court, the point is to let them KNOW your not just going away...that might be enough to cut a deal...you'd be surprised how many people think that going through some bad times, is a good excuse to screw someone else!

Five Star

ive been sub contracting for the last 3 yrs 80% of my work also installing cabinets if the company doesnt pay as per agreement, we do not go foward till balance is paid. never let it carry that far.

any unpaid balances the lien letter goes out to the builder or homeowner of the property. then the chk comes real quick but in my state it must be with in 90 days

Five Star

the company i was working for paid 100 for crown on top of cabs(track homes type of kitchens)didnt matter if it was 3 pcs of crown or 5 pcs 100 was the price.
meanwhile they would charge HO 1500
They got money its 300% markup on cabinets

D.A.S.Anthony

I too agree with the initial letter and phone call (if they still have the numbers) I find either HO, subs, Vendors, suppliers, all seem to truly "want" to pay just can't. See if at first you can politely try to negotiate a deal for some or start with all of the money. Do not back down or sympathize with them. You need it just as bad as they do! If you have to threaten legal, then do that, if you have to go the legal route, then good luck. That just sux.

Too many people are not getting paid because of this. I am personally going to have to make changes to my contracts. I like the personal garauntee clause. I may add that.

__________________
Anthony
_____________________________
www.dasassociates.com Building from Greenwich to Fairfield and Westchester Counties.

Five Star

the same people will stiff you and open up on the same street with a new name with in 2 mnths.dont back down chk maybe you can still place a lien.or send a letter of intent to where the work was done and tell them they will be involved in a lawsuit against the place they hired.