The Guaranty Fund and Bankruptcy
A colleague recently sent me the following information about the Guaranty Fund:
"A homeowner who is precluded by the Bankruptcy Court from pursuing legal action against the contractor may still be eligible for compensation from the Guaranty Fund.The homeowner can file a Request for Special Access to the Guaranty Fund. To receive this application, call the Office of Consumer Affairs at 888-283-3757. The application must be submitted to the Office of Consumer Affairs and Business Regulation within two years and six months of the contract date. Special Access to the Fund only applies if the contractor's debts have been discharged and the bankruptcy case is closed."
However, this option is no longer available. Even if the contractor files for bankruptcy, the consumer must obtain a judgment in order to collect from the Guaranty Fund. I just filed a case against a contractor and he filed for bankruptcy. As a result, I have to file a motion with the bankruptcy court in order to continue with the case against the contractor and obtain the judgment.
It is unfortunate that my client has to spend the funds to obtain the judgment, but that is currently what is required. It is still worth it for the client to obtain the $10,000.00 from the Guaranty Fund.
Please keep in mind that I am not a bankruptcy attorney, and I am not able to give advice regarding bankruptcy law.
posted by Andrea Goldman @ 11:35 PM
3 comments
3 Comments:
To be a noble human being is to have a philanthropic of openness to the mankind, an gift to guardianship undeterminable things beyond your own manage, that can take you to be shattered in hugely outermost circumstances for which you were not to blame. That says something remarkably impressive about the condition of the righteous compulsion: that it is based on a conviction in the fitful and on a willingness to be exposed; it's based on being more like a plant than like a jewel, something rather feeble, but whose very precise beauty is inseparable from that fragility.
n the whole world's life, at some occasion, our inner throw goes out. It is then break asunder into passion by an face with another magnanimous being. We should all be under obligation for those people who rekindle the inner inclination
Your client must have thought things well enough to come up with a decision like that. It's good that they've taken advantage of this Guaranty fund you were talking about.
Post a Comment
<< Home