Legal Question in Business Law in Washington

I am a partner in a firm which filed for Chapter 11 bankruptcy, yet we do have a good chance of emerging from bankruptcy. One of our creditors is an engineering firm, who hired a surveyor (third party) to do certain work on our property. We paid the engineering firm over 75k in the last six months, and part of that was the survey work performed by third party. The amount currently owed to the engineering firm does not contain ANY of the survey work (and only amounts to $2,400). We asked the surveyor to email us some of the work he did, but he sent an email back saying that the engineering firm asked him not to - and we are not technically his client directly.

I emailed the engineering firm to give permission for the surveyor to send us the files, but they refused saying they want payment on the account before they will authorize it. Yet, we paid entirely for the survey work, and now need it. The fact is we cannot pay the engineering firm without the judge approving it - so we are stuck.

Thanks for your help!


Asked on 5/13/10, 9:12 pm

1 Answer from Attorneys

Susan Beecher Susan L. Beecher, Atty at Law

What the engineering firm is doing probably amounts to a collection effort, which is illegal if you are in Chapter 11. Talk with your bankruptcy attorney about writing them a short letter explaining to them the consequences, if this is in fact what they are doing.

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Answered on 5/19/10, 6:39 am


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