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- Aug 8, 2019
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Opening this up in the hopes of a lawyer and accountant (or more) can weigh in with some thoughts, although likely already know the answer. Recently I was under contract with a mid/large shop for a complete avionics project; long story short the shop declared Ch.11 and subsequently Ch.7. By being under contract a significant % of project funds were already sent to the shop by the time they declared. They even cashed a check days before the first Ch11 filing, and never provided notice to their customers.
Just to spice up the story, and not looking for sympathy, I feel fortunate that after dropping the airplane off the shop got backlogged and didn't touch anything. Eventually they just called and asked that I pick the airplane up (at this time they had declared Ch11 but didn't disclose this to me). There are others with half-completed projects and airplanes now stranded.
1. I know that I am way down the list of claims, but still trying to figure out if I have a legitimate claim based on contract for services/equipment and monies paid?
2. How do I at least make sure a claim in in the records?
3. Long shot...any way to claim the loss similar to bad debt for tax purposes?
Any other thoughts or help is appreciated...but kinda know that those funds are vaporized. Also just highlights how fragile/weak GA is...at the same time a local 141 flight school (that was part of a major air carrier pilot pathway program) went Ch7 and student accounts were zeroed as the owners took the cash...and students were left mid-rating with no good records. All of it is almost criminal.
Just to spice up the story, and not looking for sympathy, I feel fortunate that after dropping the airplane off the shop got backlogged and didn't touch anything. Eventually they just called and asked that I pick the airplane up (at this time they had declared Ch11 but didn't disclose this to me). There are others with half-completed projects and airplanes now stranded.
1. I know that I am way down the list of claims, but still trying to figure out if I have a legitimate claim based on contract for services/equipment and monies paid?
2. How do I at least make sure a claim in in the records?
3. Long shot...any way to claim the loss similar to bad debt for tax purposes?
Any other thoughts or help is appreciated...but kinda know that those funds are vaporized. Also just highlights how fragile/weak GA is...at the same time a local 141 flight school (that was part of a major air carrier pilot pathway program) went Ch7 and student accounts were zeroed as the owners took the cash...and students were left mid-rating with no good records. All of it is almost criminal.
