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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2884
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I did some work for a customer in January 2010. I just now

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I did some work for a customer in January 2010. I just now found out that they had filed for Chapter 13 in 2008 and are working under a Chapter 13 plan. I received a letter from their attorney demanding that I return the $350 deposit I was paid for the work that I was doing for the customer and that any further effort to collect on the amount owing (around $2000) would have to go through him. Is this for real? Why is a previously filed bankruptcy affecting me in this way?
Any work performed after the date the bankruptcy was filed on a contract that was entered into after the bankruptcy filing is a valid debt that you can collect on. If there was a pre-existing contract at the time the case was filed, then you may be required to be paid thru the chapter 13 plan. Call the lawyer to explain that this is a post-bankruptcy debt, and that you are entitled to collect on it.
Customer: replied 7 years ago.
The lawyer knows its post bankruptcy. Do I have to return the deposit? Will it be a long drawn out process to finally get paid and will my invoice be discounted by the court?
You should not have to return the deposit based on the information you are giving me. As to how fast the debtor will pay, that is anybody's guess. You should consult with your attorney to review the matter in it's entirety to confirm that you are not violating the bankruptcy automatic stay. It doesn't sound like you are, but you should have your attorney review all the facts in the matter. Good luck.
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