We filed our bankruptcy 9 weeks ago and are very close to a discharge, but then we get a call about our bank trying to say that their loan is not dischargeable. We took out a DBA loan on a contract for cabinets, the materials were bought with the loan money and the bills were paid for the shop etc the cabinets were delivered and installed then rejected by the customer. We spent the money and did not get paid...the loan was only secured by the contract. Will we have to pay this back? and why would it not be included in the discharge if not secured by property?
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Let me make sure I'm understanding what you've written:
you installed the cabinets for a customer...but took out a loan to do so? If so, then I believe the issue is that the loan has secured collateral (cabinets) - you will have to return the cabinets or pay the loan back, then go after the customer for the monies owed to you. What does the loan paperwork state regarding default?
Here is another link that may help you:
I'm sure someone else will pop on that has experience with this area. -
we run a cabinet business....we had a commercial contract with a general contractor for cabinets to be built and installed at a school, the school rejected the cabinets after they were done so we did not get paid for that particular contract, the bank is trying to dispute our putting the loan-secured-by-contract even though we did not secure it with any property of our own. do they have any leverage? we are going to talk to our attorney next week...Comment
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