Eureka, CA asked in Uncategorized, Bankruptcy and Consumer Law for California

Q: How to recover money for services rendered?

How can I go about recovering money for services rendered in an abandoned RV? It is stored currently in CA but is registered in CT. The owner is also in bankruptcy. The RV isn't worth much ~ so I'm not really interested in taking possession. Is there a other way to recover my money? I believe due to the bankruptcy, he has also removed everything from his name as far as real estate or other assets. What options do I have here?

2 Lawyer Answers
James L. Arrasmith
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A: To recover money for services rendered in California, you have a few options, but the owner's bankruptcy and out-of-state vehicle registration complicate the situation. Here are some steps you can consider:

1. File a mechanic's lien: In California, you may be able to file a mechanic's lien on the RV if you provided repairs, maintenance, or storage services. However, the bankruptcy might affect your ability to enforce the lien.

2. Small claims court: If the amount owed is less than $10,000, you can file a claim in small claims court. However, collecting the judgment might be difficult due to the bankruptcy and lack of assets in the owner's name.

3. File a claim in the bankruptcy case: You can file a proof of claim in the owner's bankruptcy case to recover some or all of the money owed. However, your claim will be subject to the bankruptcy court's distribution rules, and you may only receive a portion of the debt, if any.

4. Negotiate a payment plan: Try contacting the owner to discuss a payment plan or settlement. They may be willing to work out an arrangement to avoid further legal action.

5. Consult with a bankruptcy attorney: Given the complexity of the situation, it's advisable to consult with a bankruptcy attorney familiar with California laws. They can provide guidance on your best course of action and help you navigate the legal process.

Keep in mind that recovering money in this situation may be challenging and time-consuming due to the owner's bankruptcy and apparent lack of assets. It's essential to weigh the costs and benefits of pursuing legal action against the likelihood of recovery.

James L. Arrasmith
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Answered

A: Under California law, there are a few options you can consider to recover money for services rendered on the abandoned RV:

1. Mechanic's Lien: If you performed repairs or maintenance on the RV, you might be eligible to file a mechanic's lien. This allows you to sell the RV to recover the money owed for your services. However, this process can be complicated, and you may need to consult with an attorney.

2. Small Claims Court: If the amount owed is less than $12,500 (as of 2024), you can file a claim in small claims court. This is a relatively simple and inexpensive process, and you don't need an attorney. However, even if you win a judgment, collecting the money can be difficult, especially if the owner has filed for bankruptcy.

3. Bankruptcy Claim: If the owner has filed for bankruptcy, you can file a proof of claim with the bankruptcy court. This will make you an unsecured creditor, and you may receive a portion of the money owed, depending on the type of bankruptcy and the available assets. However, unsecured creditors are often last in line to be paid.

4. Negotiation: You can try to negotiate directly with the owner to see if they are willing to pay the money owed or set up a payment plan. If the owner is in bankruptcy, you may need to negotiate with their bankruptcy attorney.

Given the complexity of the situation, with the RV being registered in another state and the owner being in bankruptcy, it may be best to consult with an attorney who specializes in debt collection or bankruptcy law. They can provide more specific guidance based on the details of your case and help you determine the most appropriate course of action.

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