I am on the edge of BK I am self employed in the renovation business, I got
deposits from customers , some got there material some did not yet , but its
all on order,
my credit cards are at $60,000, I have no sales anymore so no income. if I
call it quit go bankrupt, what about all the customers that paid deposit ,
on there work
Antipodean Bucket Farmer
11-25-2005, 08:04 PM
In article
<fupff.2943$KP5.394518@news20.bellglobal.com>,
yb@sympatico.ca says... I am on the edge of BK I am self employed in the renovation business, I got deposits from customers , some got there material some did not yet , but its all on order, my credit cards are at $60,000, I have no sales anymore so no income. if I call it quit go bankrupt, what about all the customers that paid deposit , on there work
Your says that you are in Canada, so things might be a
bit different.
However, in the US, those customers would be owed a
refund. That makes them "creditors." Unfortunately
for them, they will go to the end of the line as,
"unsecured creditors."
First in line for your assets (if any) is your tax
authoriTAH. Second is "secured creditors," meaning
anyone who has claim to particular physical stuff (e.g.
equipment that is financed but not yet paid off.) Next
is "unsecured creditors," which includes the above-
mentioned customers, along with the banks that issued
your credit cards.
The folks in the last category are generally screwed in
any bankruptcy proceeding.
On the other hand, it is possible that some of those
customers (and those credit card issuers) could
challenge your bankruptcy filing based on accusations
of fraud. Meaning that they claim that you knew (or
should have known) that you couldn't make good on the
debt when you accepted the deposits (or borrowed on the
credit cards.)
Best thing to do is consult with a lawyer. Some might
have a free short consultation.
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