Checks and Balances

Customers Lose Money After Business Files for Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is not just for individual consumers—it is also available for failing businesses as well. Unfortunately, as great as Chapter 7 can be for the person filing for it, it can sometimes affect customers negatively if a business is filing. A recent ruling in Fresno, California shows the scope of that impact.

Abbey Flooring & Design filed for Chapter 7 bankruptcy last year and a final decision in federal court has just finally erased more than $3 million of their debts. This is actually the second time the owners, Gary and Glennyce Cropper, had a similar business and bankrupted it. They have left dozen of customers and sub-contractors out millions of dollars.

Former customer Walter Fieguth is frustrated, but also thankful that his $54,000 kitchen remodel was almost done when Abbey Flooring closed its doors. Unfortunately, he also spent another $10,000 in legal fees to fight a lien from the sub-contractors who never got paid. He is also amazed at how cruel and careless the Croppers were.

"The same day they were packing up their things in the nighttime to clear out their inventory and leave without paying their rent to their landlord, they were calling my house to see if they could come and personally get a check for some of the things they installed," he said.

Many businesses are forced to file Chapter 7 bankruptcy for honest reasons, but it appears as though Abbey Flooring & Design has no trouble making the same mistake twice.

If you live in the Augusta, Georgia area and you're thinking filing for Chapter 7 bankruptcy, contact Seymour & Associates, P.C. for a free consultation by calling (706) 872-7117.

Read More About Customers Lose Money After Business Files for Chapter 7 Bankruptcy...