Posted by Stoli on 9/9/07 12:58pm
Msg #210017

LDSS - Shawna Owens update

Subject: Shawna owed me $100 - everyone should post. n/m

I received a private message from Shawna:

LDSS has filed bankruptsy please contact our attorney at:

Winterbotham Parham Teeple
4371 Latham Street Suite 105
Riverside, CA 92501
951-686-7717

Reply by Susan Fischer on 9/9/07 1:01pm
Msg #210019

Thank you for this post. n/m

Reply by Kevin/Ct on 9/9/07 1:16pm
Msg #210020

Don't count on getting very much from the bankruptcy court

Reply by Susan Fischer on 9/9/07 1:25pm
Msg #210022

Pennies on the dollar is better than no pennies at all. n/m

Reply by Les_CO on 9/9/07 2:11pm
Msg #210025

If they have declared bankruptsy, be careful on how you ask for money owed. You must follow the bankruptsy laws.

Reply by Barb/MO on 9/9/07 2:21pm
Msg #210026

The first step is to verify that the bankruptcy has actually

been filed, by who/whom (company or principal(s) personally), what chapter, whether it's classified as an asset or no-asset case, in which district, the case number, and the name and address of the trustee. Technically, all of you who are owed should receive a notice that is sent to the creditors that provides all that information, but debtors don't always schedule all the creditors as they should. (However, you are still stayed from collection if you have notice of the filing.) The attorney whose name has been provided should be able to give that information to you, if he or his staff can be reached.

If it's a no-asset case, there's no use to file a proof of claim. If it is an asset case (doubtful), you would want to do so. If it's not and becomes one, the trustee is supposed to advise the creditors.

In the alternative, if it turns out the petition hasn't really been filed, you can continue your collection efforts.

Just a thought.

I should mention, that I am not an attorney, and therefore, cannot give out legal advice, and that this should not be construed as legal advice.

Reply by Stoli on 9/9/07 4:13pm
Msg #210032

If we present our invoices for payment, won't the debts be

discharged in the bankruptcy, and therefore, uncollectible?

Reply by Barb/MO on 9/9/07 5:22pm
Msg #210039

I'm sorry. I don't understand your question, but

I'll take a stab at making a general statement, that might give you the answer you seek.

If there actually has been a Chapter 7 filing for LDSS, the company, you are stayed from trying to collect the debt while the bankruptcy estate is open. In the end, a corporation in a Chapter 7 case doesn't receive a discharge, but for all intents and purposes, your debt is uncollectible, because, in theory, if there were any assets, the trustee in bankruptcy would have brought them into the estate, liquidated them, paid all costs of administration, and then paid a dividend to creditors, in the order of their priority, to the extent there were any funds remaining in the estate.

Another general statement--If you're thinking that if you're not listed as a creditor, you can wait until the bankruptcy estate administration has been completed, then go try to collect, that's probably not an effective strategy for a couple of reasons. First, as explained above, the trustee will have brought all assets of the debtor into the estate, and second, the debtor can go back at any time to add creditors to its schedules, even after the case is closed.

Please note these are just my opinions. I had more than 20 years experience in debtors/creditors remedies law as a non-attorney, but last was employed in that area more than seven years ago. I am not aware of any change in the law that makes what I have stated incorrect, but that is always a possibility. (And I welcome any corrections to what I've stated.)

If in doubt, I'd suggest consulting an attorney if, in fact, there is a bankruptcy filing in play, and you want to know what your rights as a creditor are.

HTH.

Reply by Linda_H/FL on 9/9/07 5:10pm
Msg #210035

Re: The first step ..Barbara

"However, you are still stayed from collection if you have notice of the filing. " - not just on her word though - I believe you need either a copy of the filing stamped by the bankruptcy court or the notice received - I don't believe her telling you is considered sufficient notice to impose a stay.

And Kevin - maybe you can help here - I believe there is an 800 number for checking on bankruptcy filings...do you have that number available? (I had it in my rolodex in my office in CT - very handy item)...perhaps you can post it and people can check for themselves. Just a thought...

Reply by Barb/MO on 9/9/07 5:43pm
Msg #210043

We are in complete agreement, Linda. Verification of filing

is essential. That's why I suggest asking for all that specific information. Then it can be verified. It is very telling, too, when that information isn't forthcoming upon request. It often means the filing hasn't actually been accomplished. I believe I have previously suggested on this forum to ask for a copy of the filed-stamped petition or the actual notice to creditors.

Although I'm not Kevin, I can tell you that each (or nearly each) bankruptcy court has a toll-free number to the Voice Case Information System (VCIS) via which you can check for a bankruptcy filing. The trick is knowing in which district the case has been filed. Sometimes it's pretty obvious, other times, not. I'll be interested to know if there's one central number. I tried to find one by Googling, without success. (For an individual court, you could Google by the "district (ex., Western District of Missouri) bankruptcy VCIS" Further, someone else on this forum was able to call the Colorado bankruptcy court and get someone there to check for a filing over the phone. Not all clerks' offices are that cooperative, though.

Reply by Kevin/Ct on 9/9/07 6:38pm
Msg #210045

Re: The first step ..Barbara

The bankruptcy laws have changed twice in the past 5 or 6 years. If you are a creditor of a bankrupt you should receive a written notification from the bankruptcy court informing you of the case and instructing you as to when to file a proof of claim. In some cases the court will instruct you as to whether or not to file your proof of claim. If you are listed as a creditor you are subject to the court's order of automatic stay. In which case you can not proceed in collection against the bankrupt in any other forum than the bankruptcy court. If you do you are subject to a contempt citation. You would have to file the proof of claim and wait.

If you are an unsecured creditor...you will probably receive very little , if anything. The unsecured creditors are paid on a pro rata basis after the secured creditors are paid.
If you suspect that they have filed bankruptcy, it is best to verify it before moving forward with collection, and risking the contempt citation.

You can contact the court to get a number to call to verify the status of the bankruptcy. You can also get the same information on the internet through PACER.

Reply by Loretta Reed on 9/9/07 7:20pm
Msg #210049

Re: The first step ..Barbara

Guys.....I really get irritated that these people start a signing service, bill the client, get paid by them for the work YOU did and then file bankruptcy on YOUR money because they spent it. I hope she has no car, not even a bicycle, see how she likes it. What goes around is definitely going to come around on her. I hope she doesn't laugh last. I am also glad that I stay away from signing services as much as possible, thank goodness a title company hasn't gone under on me. I am so thankful that I have not been burned like that and wish you all that did get burned the best of luck.

Reply by Stoli on 9/9/07 7:26pm
Msg #210051

I just sent a letter and outstanding invoice to the attorney n/m

Reply by Calnotary on 9/9/07 8:55pm
Msg #210061

Re: I just sent a letter and outstanding invoice to the atto

Somebody here mention that she shouldn't have purchased that big house. According to her address she lives in a very large home with a huge lot.

Reply by Leanna Kemp on 10/11/07 12:56am
Msg #215914

Thank you very much for this info. Just found out they bankrupted.
Appreciate you sharing this very much.