Can I recoup money owed for services that were not completed?

[PhxGuy520]

What is the name of your state (only U.S. law)? AZ

I have been working with what had been a pretty reputable home loan modification company. I found out today they are claiming BK. I had already paid them upfront but the services were never completed. Is there anyway for me to attempt to recoup the money I paid? Can anyone help give me some direction or next steps? Is there an attorney that helps with this sort of issue?

 

[HomeGuru]

What is the name of your state (only U.S. law)? AZ

I have been working with what had been a pretty reputable home loan modification company. I found out today they are claiming BK. I had already paid them upfront but the services were never completed. Is there anyway for me to attempt to recoup the money I paid? Can anyone help give me some direction or next steps? Is there an attorney that helps with this sort of issue?

**A: you would need to submit a claim to the BK court. Be prepared to stand in line and be prepared to see no $$$$.

 

[PhxGuy520]

Thanks for the response. Can you tell me how I go about finding the proper court? Also I am thinking I would need the help of an attorney. Would I just contact a BK attorney in the state the company is claiming BK in?

Maybe just a rant, but I dont understand how I am lumped into the same group as the creditors. Seems to me this is basically fraud. Promise a service, collect the money and never complete the service. I am not a bank where I inherit some risk in my line of work, I am a consumer who paid for a service that was never completed????

 

[Zigner]

Thanks for the response. Can you tell me how I go about finding the proper court? Also I am thinking I would need the help of an attorney. Would I just contact a BK attorney in the state the company is claiming BK in?

Maybe just a rant, but I dont understand how I am lumped into the same group as the creditors. Seems to me this is basically fraud. Promise a service, collect the money and never complete the service. I am not a bank where I inherit some risk in my line of work, I am a consumer who paid for a service that was never completed????

So, your contention is that they owe you money, right?

If the answer is "no", then I don't know what you're talking about.

If your answer is yes, then you meet the definition of a creditor.

 

[latigo]

Consider your options from a practical standpoint.

First you were dealing with a fictitious entity, the “home loan modification company” (most likely a corporate entity) and not an individual.

Let’s assume that relying on Title 11 USC Section 523(a)(2) you elect to go to the expense of hiring an attorney to fail a lawsuit in the bankruptcy court which results in your claim being declared nondischargeable by reason of some fraudulent conduct committed by the debtor.

The result would be that the debt owed you survives the company’s bankruptcy. The practical problem is that the bankrupted company is not going to survive the bankruptcy! Because it is already defunct most likely it will be dissolved.

And that leaves you with a cause of action (legal claim) with nothing to plant it on and your only practical recourse is to file your documented proof of claim.

If you want to download the form, go here:

www.uscourts.gov/bankform/formb10new.pdf