The Chapter 7 Bankruptcy Filing Of American Shingle & SIding, Inc.
The local and national news has picked up on the Chapter 7 Bankruptcy filing of American Shingle & Siding, Inc. The case was filed on September 2, 2010, as Chapter 7 Case No. 10-85541-MGD (click here for the petition). The schedules were not filed with the petition, but the petition indicates that the company had assets between $1-10 million, and claims of $10-50 million. The Chapter 7 filing reflects that American Shingle has ceased business, and the Chapter 7 Trustee is now administering the estate and assets.
It is certainly no surprise that another company in the construction business has gone under. What does this mean for customers who have paid for work that has not been completed or for warranty claims? The news is not good, as in the overwhelming majority of Chapter 7 cases, there is no distribution for pre-petition unsecured creditors. As of now, it is not clear whether the company placed deposits in a separate account, but that would be unusual for such companies. In most cases, the finds go into the general operating account and/or are used to fund labor and materials for other projects. What is a certainty is that American Shingle will not be doing any more work.
American Shingle is a little different than other companies because of the press it has received in the last few months. The company has recently been the subject of an investigation by the U.S. Secret Service. An article in the Charlotte Observer reveals that the company has several unhappy customers in that state. WXIA Channel 11 news in Atlanta did a recent story on the closing. One couple is allegedly out $7,000.
If you are owed money by American Shingle, there are a couple of important things you need to consider. First, even if you have contact information for the owners, managers or employees, federal law prohibits you from contacting them to collect a debt. Further, while you no doubt want information about the money they owe you, calls to their lawyer or the trustee will not likely lead to satisfaction as it normally takes several months for these cases to shake out.
There is one very important consideration for customers of American Shingle. The names and addresses for creditors has been filed with the petition, and more detail will be available when the full schedules are filed (I removed 18 pages of names and addresses from the link provided above). This is public information readily available to anyone. Other companies, legitimate and otherwise, will view this information as very high quality leads for people who obviously have a need for roofing services. In other cases, unscrupulous vendors have gone after these potential customers with various sales pitches, and many will falsely state that they are somehow related to the bankruptcy company or that they have have some kind of authority to take over the work of American Siding. Do not do fall for these scams. Reputable contracts may contact you from the creditor list, but they will understand that you likely have lost your money with American Shingle, and will not falsely state that they have authority to complete American Shingle jobs. As with everything else, fully investigate companies with online reviews and the Better Business Bureau.
Scott Riddle’s practice focuses on bankruptcy and litigation. Scott has represented Chapter 7 and 11 debtors, creditors, trustees and other interested parties in bankruptcy cases and bankruptcy litigation. For more information, click here.
how can i confirm my name is on the list of unsecured creditors?
My wife and I are victoms of the American Shingle bankruptcy. We paid approx $2000 deposit for a roofing job, How do we get listed as a creditor on the suit?
Thank you
My wife & I are also victims of American Shingle. We paid a deposit of over $5600. The local police department says there is nothing they can do about this scam. Our County Magistrate says to file a civil suit. How do I get listed as as a creditor on this petition. What else can I do?
I am another victim from American Shingle we paid $3000 dollas for our roofing and can someone help me how to be in the list of creditor PLEASE PLEASE PLEASE............
My wife and I are also victims of American Shingle. We paid for the bill less $268 which covered labor and materials, around $6000 dollars. They did the work and then left us with the materials bill of almost $3000 that was taken out in our name and not the company name; this is something we knew nothing about until we received letters from the supplier. Now that they have filed for bankruptcy, they have the audacity to try to collect the money from us when the still have not payed the suppliers!
American Shingle almost destroyed our home in July, 2009 by not covering the roof with a tarp during a heavy thunderstorm. The interior was flooded. We settled with American Shingle on the damage and now the Chapter 7 Bankruptcy Court Trustee wants us to pay the remaining balance on the roofing job. We may need a lawyer. This company is the Devil!
How can I get listed as a creditor in the bankruptcy case involving American Shingle & Siding?
Thanks
I have lost $3000 and have filed with the attorney general of NC and also with the bankruptcy count in Atlanta. What else can I do. I understand if there is any money left that the home owners will the the last one to get it. That infuritates me because I dont't want to pay the vendors that they used. I consider that another crime if those vendors take our money.
you have to file a proof of claim with the GA Bankruptcy Courts
American Shingle owes me $3717.00 deposit
from April 2010 have filed for it and also filed with AG of NC as well.
My husband & I are victims of American Shingle also. They owe us a deposit of $5,687.20 from April 2010. Promised new roof date of 6/17/10, then reschedled to 7/8/10, then additional rescheduled date. It's really sad how the law is supposed to work for the good of the people, yet it allows people to get away with what they have done. Why is it that they will pay the creditors such as suppliers, who are businesses that can write off their losses & keep on going; whereas, 2 honest hard working adults taking care of their family & children, are left to try to figure out how to afford it, especially in this economy now! At least WE can sleep at night, but a roof over our heads IS PRETTY IMPORTANT! Will file a proof of claim with GA Bankruptcy Courts even though it may be too late now and may never see a dime of it back.