A couple years ago, my parents' house burnt down.
My mom was a chronic alcoholic, and stopped working, dad's a retiree.
Home insurance paid for reconstruction, but the construction company was shady and after many verbal contracts with my mother, some substitutions of building materials, and some fraudulent billing (they charged them for new studs, but left the old ones standing), they went $ 22,000 over what the home insurance company would pay for construction.
A few months after moving back into the unfinished home (the contractors stopped work when it became obvious they weren't going to get their final payment) my mother passed away.
My brother had bought the house shortly after construction was complete. He had been paying the mortgage since before the fire. My father continues to live in the home.
Now the construction company is threatening to sue my father. They claim that the sale of the home was a fraudulent act intended to circumvent the lien that they were intending to put on the home.
My father is 63 years old. He has been a chain-smoker since he was 9. I believe he has untreated diabetes. His feet are swollen to the point that he can't wear shoes. He doesn't leave the house, can barely walk, and does not want any doctor's treatment. He will be dead very soon.
My brother isn't afraid of them claiming fraudulent sale of the house. He has a lawyer-friend and enough money to sustain a court case.
He will not, however, pay legal fees on my father's behalf, and when it comes down to it, there's no way he could defend against this construction company.
So, look at it as, we are not morally obligated to pay this money, but when they decide to sue, they WILL win.
My father has no assets. He no longer owns his home. He has a 7-year old, damaged car he doesn't drive. He is chin-deep in debt of all sorts. His pension is $ 1300 a month, which barely covers his living expenses without a mortgage to pay. He has a life insurance benefit, through work, totaling about 275,000, which is coming to his 5 children after his death.
If he files for bankruptcy before the contractors sue him, can they make him get a life insurance cash-out? Or affect his pension?
If he doesn't file for bankruptcy, doesn't show up to court, and lets the contractors get a judgment against him, what can they take?
Do they have any legal right to come after his children for the money?
Answer by Danny
You need to see an attorney that practices bankruptcy law.. I wouldn't wait any longer ..
Answer by Sandra M
First of all there is not guarantee that this shady contractor will WIN in court. If they sue your father I know you said your brother doesn't want to pay legal fees for your dad, but the first thing he should do is counter-sue them. So let's say they sue him for $ 22,000 and he counter-sues them for let's say $ 40,000 for the work that they ripped him off on then he could gain money from their suing him.
Also, the other alternative here is let them sue, you can't get blood from a turnip, and after they get their judgement, then take your dad straight to a bankruptcy attorney and file for bankruptcy. Then they can't get anything and their judgement is no good.
Also, report this moron to the State where he has to have a valid contractors license to work. In Virginia it comes under the Department of Professional and Occupational Licensing. Tell them what he did with regard to this house and how he ripped your dad off. Usually they have a fund and your dad may be able to recover money from that too.
Talk to the State Board of Licensing about this rip off artist.
As far as them making him cash in his insurance policy I don't see any judge allowing that to happen since your dad is failing in health, personally I think they are going to look pretty stupid if they take your dad to court.
Good Luck.
Know better? Leave your own answer in the comments!
Orignal From: File for Bankruptcy or Ignore the People Suing him?
Post a Comment