Bk Home Furniture

We own a small furniture DELIVERY company. We delivered for Bombay Company for 12 years. They would charge their customers 15% extra for home delivery. We took 10% and they kept 5%. They declared Bankruptcy and continued to pay their bill to us. For 3 months we continued to do business, until they stopped paying us. In total, they paid about $16,000 for the 3 months. We ate the 4th month of about $5500 and took it as a loss since we were unsecured debt (we later sold the debt to a clearinghouse). We continued to deliver for their customers on a C.O.D. basis, until they shut down in February.

We received a letter from a law firm stating we owe them the $16,000 since it was secured by the court to be paid to the secured creditors. In the letter it states they will settle for $7800 ($16000-new value) if we pay by the 27th of October.

Three defenses are listed:
1. payments part of a contemporaneous exchange transaction (NO)
2. payments were consistent w/ prior course of dealing between businesses or ordinary w/ industry standard (maybe/ 12 years of history)
3. we provided "new value" to debtor (yes)

They subtracted the $7300 for the 'new value'.

Any ideas would be appreciated.

Let me know if I need to clarify. And, yes, we are going to see an attorney when we find one.

You won't get a good answer on this board. Get an attorney now, and don't do anything until you do. Don't communicate with anyone on this matter except your attorney.

2008-10-06 00:08:21 by cool dad

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Background

Assets is only Home worth about 70k and 1,800.00 in IRA
Filed Bk due to lack of child support payments (yes it is going through the courts but it takes years to get anything done)

Owe IRS 5 k in back taxes due to error in tax software (learned my lesson on that one)

Make about 2300 mo. debt is about 2100 per month (without gas). They want me to pay 80 per month but I know that will take food and/or gas.

Should I
A. Sell my furniture (my daughters bed, kitchen table some dressers, jewelry (I only have a ring and necklace and misc I have a computer that doesn't work (I am on my work computer)?

B. Get rid of Cable (which is my only source of entertainment at this stage)

C. Both.

What would you do in my shoes?

How old is your daughter? Would you be able to take a second job. That is what I have done before. Maybe if she is younger you could find some houses to clean...that way you could take her with you. I don't know your exact situation but I have found that God has always provided opportunities for me to over come my hardships. I would play it by ear and do what was necessary on a month to month basis.Good Luck and God Bless!

2008-06-16 09:47:33 by rabbit

Price: $289.00 $83.36

Pneumatic Seat Height Adjustment
Mesh Back
Black Nylon T-Arms