Bankruptcy question for a contractor I hired filing Chapter 7?

Question : Bankruptcy question for a contractor I hired filing Chapter 7?
Hello,
I hired a contractor who had good references with the BBB. but unfornately he ended up being crooked. According to the license commission in Maryland, the contractor collected a million dollars and did not complete any of the home improvement jobs. Of course, when I find out his company was in fiancial troubles, I asked for a refund. I ended up getting a lawyer and suing as civil fraud case. The contractor has now filed chapter 7 bankrupcty with the corporation and personally. The strange thing about it his wife is a lawyer who helps small corporations get out of trouble. All of the clients think it is purely fraud. They have a nice 800,000 dollar home and a couple of months to filling bankruptcy, they sold their cars and brought new cars, one being a Mercedes. My lawyer and I got all the way to discovery in our civil suit before he files for bankruptcy. My question is all hope collecting my money gone? My lawyer said we can file another complaint in bankruptcy court?
maryland home improvement contractor

Best answer:

Answer by josh&carla
Your attorney is right. Your can file something that doen’t let him off the hook with you

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#1 written by DLeibowitz 1 year ago

You can file a complaint to bar dischargeability of debt pursuant to section 523 of the bankruptcy code. This would mean that the debt remains even after bankruptcy.

Maybe the trustee can pursue the debtor’s wife on some sort of fraudulent transfer theory. Ask your lawyer to explain this to you.

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#2 written by ngcstudent 1 year ago

If it is a chapter 7 liquidation your claim will most likely go to the bottom of all other creditors; however, there are so many new laws in effect to protect creditors against bankruptcy fraud there may be a good chance the bankruptcy will be dismissed instead of discharged.

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#3 written by Lesley 1 year ago

DEFINITELY have your attorney file a complaint in Bankruptcy court. And do it ASAP Fraud is a valid reason to object to discharge in bankruptcy court, and you need to start an adversary proceeding (basically this is a separate case connected to a bankruptcy that can have a full blown trial and resolve things that you are trying to resolve outside of court). If your attorney is unfamiliar with adversary proceedings, you may want to find an additional attorney with bankruptcy experience to serve as co-counsel to ensure that the bankruptcy code and rules are all properly followed.

Also, if their 800,000 house and new cars aren’t listed on the bankruptcy schedules, have your attorney give the US Trustee and US Attorney’s office a call. They will prosecute bankruptcy fraud if they think there is a case.

Jessica is right that if a discharge has occurred it is too late to object to discharge, however, you said they just filed, it takes about 4 months to get a discharge. As long as you file the objection in time for the deadline, you should be okay. Don’t lose hope, but you really want to make sure the attorney you use knows something about bankruptcy court procedure which is why I suggest having a bankruptcy attorney as co-counsel (at least).

Adversary proceedings can be expensive, but based on what you describe, I suspect it’s still cheaper than what this guy owes you.

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#4 written by Jessica B 1 year ago

Unfortunately, unless you pursue criminal charges, there is nothing that you can do IF the Chapter 7 is discharged. Unless he slips up, and only lists your company on the Bankruptcy, you won’t see a dime. Your Attorney may just be trying to pull a fast one on you too. Chapter 7 is an absolute discharge of all debts…you will be able to file on relief your taxes, but that is little consolation considering the amount that is owed. Don’t waste anymore time or money on the Attorney…there really is nothing that you can do. Go speak with another Attorney in your state to get a second or third opinion, but in Tennessee, it would be a loss. Sorry to be the bearer of bad news!! Good luck to you!!

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