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Service a Property in Bankruptcy?

Discussion in 'Commercial Snow Removal' started by Snowgeek, Dec 4, 2008.

  1. Snowgeek

    Snowgeek Junior Member
    Messages: 27

    I deal with a property management company that has hired us, as agent for the property owner, to plow and salt a commercial location. The contract states that they have 30 days to pay from date of invoice, along with most all of the regular verbiage a management company will have in their contracts.

    I have just received notice from the federal bankruptcy court that the owners of the property have filed for Chapter 11. I immediately asked my contact, via e-mail, how this might play out. He replied that they are staying on as management as long as they get paid and that I would have to make my own decision. It would seem to me that I will be nearer the bottom of the payback list and less likely to see even my costs back from this property, much less any profit...

    Not sure if I even have the legal right to stop service! Probably need to speak to my Atty.

    Thoughts? :dizzy::confused::mad:
  2. Gicon

    Gicon Senior Member
    from MA
    Messages: 989

    Bail out now. There is plenty of paying work out there. Go find it.
  3. stumper1620

    stumper1620 Senior Member
    Messages: 222

    I bet your contract has a performance clause, where they can drop you if you fail to perform... simple don't show up and you failed to perform.
    your out...
    I wouldn't waste another drop of fuel on that lot.
  4. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    if it is a chap 11 it is just a reorginization you will either get paid by the manager or the trustee

    i wouldnt sweat it
  5. stumper1620

    stumper1620 Senior Member
    Messages: 222

    Chapter11 the trustee can pay partial of what is actually owed.
  6. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    i guess i assumed that the OP hasnt even invoiced the property yet

    IPLOWSNO PlowSite.com Addict
    Messages: 1,620

    bail bail bail youll be the one that gets screwed watch peoples court lol
  8. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,236

    We worked for MCI\Worldcom through their bankruptcy. We got paid regularly for all current work, and were paid around 23% of what they owed prior to filing.

    I would speak with your attorney, let him\her look at the filing.

    Not an expert, but they were required by the court to pay all invoices within 45 days.

    So do your homework and ask questions before listening to all the negativity telling you it's the end of the world.

    PS Still working for them, still a great customer.
  9. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    Try to get paid in advance monthly for your services, or bail. Your not a secured creditor and will get the shaft on this one unfortunately when shite hits the fan. We have a contract with a huge auto parts manufacturer who has been announcing plant closures all around the site we do. Were closely monitoring their payments, cuz you never know when they'll decide to pull the plug.
  10. 3bladz

    3bladz Senior Member
    Messages: 173

    Who is the contract with? mgmnt company or business. Who's check is it? If it is the management company it seems they would be liable to pay for the service they hired you to do.
  11. tilawn

    tilawn Member
    Messages: 55

    This sounds like a Circuit City location maybe. I was let go from my locations for CC which was just fine. You will probably get paid but it will be a very lengthy and aggraveting process GOOD LUCK
  12. smoore45

    smoore45 Senior Member
    Messages: 526

    I've heard that it is actually easier to get pay for work done AFTER they have filed, but any work done prior you are SOL. We all need to keep up with this here in Michigan because we could be facing many more companies going bankrupt soon. :cry:
  13. beatle78

    beatle78 Senior Member
    Messages: 175

    I'm not an attny, but based on what I've read here, it's sounds like it's a good thing that they went ch 11 before you did any work.

    It sounds like any work done prior to the ch 11 you may not get paid, but if you work for them under ch 11 you will get paid....

    def verify it with someone much smarter then me.

    It's tough to walk away from cash :) ... as long as you do get paid...
  14. big acres

    big acres Senior Member
    Messages: 653

    You are definetly in line to get screwed. Call them to renegotiate... you signed a contract with a business that was NOT in chapter 11. Offer them pre-paid service only. If they balk, use your 30 or 60 day out clause in your agreement and send it certified mail for documentation. Document every communication with them!
  15. Woodland

    Woodland Senior Member
    Messages: 269

    I am assuming that your contract is with the management company and not the retailer who is filing for bankruptcy. If this is the case then, legally speaking, you should have no problems collecting what is owed under the contract. However, if you learn from the misfortunes of other on this board, management companies are not known for playing on the level, thus, I would submit a final bill and bail.
  16. coldcoffee

    coldcoffee Senior Member
    Messages: 776

    I worked several years for Windham International. Each year I would get a release to sign after the contract was signed...to hold the management co. harmless, I never would sign it and always got paid anyway. But always look for liability clauses, to hold harmless for non payment, etc...
  17. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,931

    yeah i posted last week about a contract i have. I re-wrote what i was signing to because they wanted to not allow us to collect funds if the company was to go under and choose not to pay, i dont think so.:gunsfiring:
  18. BenW455

    BenW455 Junior Member
    from WV
    Messages: 19

    Get paid in advance or dont do it.
  19. creativedesigns

    creativedesigns PlowSite.com Addict
    Messages: 1,929

    If you have a legal signed contract, & they fail to pay your company, you can place a lein on the property.
  20. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    i have heard that as well, but its only from the standpoint of ..... say they go into way bad debt, cant afford the bills ... you sue...you win... they file... you could get nothing.

    after they file it takes like 7 yrs? i think befor they can do it again, you sue , you win , they cant file...so you just take every thing they own

    id plow it , and make them pay with in 48 hours cash