Legal Question in Bankruptcy in Alabama

Debtor contract responsibilities

I am building a house. In November 2001, I entered into a contract with a cabinet maker and paid him 1/3 of the total amount, to purchase materials and begin work. He repeatedly delayed beginning construction of our cabinets, hard to reach, once he moved without notifying us, we had to track down his new location. He has filed bankruptcy and listed us as a creditor. Shortly before filing, he came out to our house site and requested an additional $500.00. My wife went to his shop not long ago and found it deserted. She filed a ''theft by fraud'' complaint against him. A couple of weeks later, we got the bankruptcy filing notice. Since we filed ''theft by fraud'' before he entered into bankruptcy, can we continue this course. We are only asking that he build our cabinets, not that he repay us. We are willing to complete the contract and even pay the full amount, however believe he fraudulently entered into this contract with little intention of ever fulfilling it.


Asked on 9/15/02, 4:06 pm

1 Answer from Attorneys
Sterling DeRamus Sterling L. DeRamus, Attorney at Law

Re: Debtor contract responsibilities

If you gave the $500 within 60 days of the filing of the bankruptcy, you may be able to argue that the $500 is presumptively obtained fraudulently, and therefore is not subject to discharge. However, it would probably cost you more than $500 to fight it. You should also be aware that bankruptcy does not affect criminal proceedings if in fact you swore out a warrant for this man's arrest.

Also, check the bankruptcy code to make sure I'm right on the 60 days - it might actually be 30, but I don't have it in front of me at this moment to check. Good luck.

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Answered on 9/16/02, 10:15 am


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