NORTH CHARLESTON, S.C. (WCSC) – Some customers of a Lowcountry contractor say they were blindsided by the company's bankruptcy, leaving projects and funding in limbo.
On the Level Construction LLC, a North Charleston-based kitchen and bath remodeling company, filed for bankruptcy on Jan. 30 after employees were informed the day before that the business was insolvent, according to LinkedIn. I applied.
The company has less than $50,000 in assets and more than $1 million in debt, according to its Chapter 7 bankruptcy filing.
Customers say they chose this product over others because they thought it was different, but now it stands out for all the wrong reasons.
“They took my $17,116.42 and I want to know where it is,” said customer Karen McLaren.
McLaren prepaid half of the price for a handicap-accessible bathroom in late December, but no work has been done so far. She and her husband, a Vietnam veteran and former POW, decided to fund the project because they have difficulty getting around using a walker.
“They had plenty of time to tell us they were going to break up,” she said. “Why didn't they give me my money back?”
The company's owner, Sam Kaufman, also has a motivational podcast called “Never Stop Building,” which states that On the Level will be a “multi-million dollar” company by September 2023. He claimed that it had become. Also, he has his own website and book, and he shares advice online.
“I can't believe it,” said Carissa Debow, another customer. “He can file for bankruptcy and walk away from this situation, but the rest of us will have to clean up the mess he made.”
Debow and her husband spent months designing their dream kitchen and bath and got past the demolition stage, but now they're stuck in bankruptcy. She said that days before the company went bankrupt, she paid about $30,000 more to move on to the next stage of the project.
She believes the company pressured her to write a check sooner rather than later.
“He doesn't seem to care much about the people who are actually affected by this,” she says.
Last fall, Kaufman announced on his podcast that he was taking a job as a business coach and that his wife, Amanda, would be taking over the company while they moved upstate.
The two declined interview requests and did not respond to requests for comment through their lawyers.
But in a lengthy post on his public Facebook page on Wednesday, Sam explained the difficulties the company has faced over the past few years.
He said in part, “My business has started the process of bankruptcy.” [two] Years before I actually had to make the decision…I grew up too fast and delayed making the difficult decision. ”
“I don't think it's illegal, but it's certainly not right. It's not how our system works,” said Ron Jones, a lawyer specializing in bankruptcy law. “But it happens every day in almost every situation, not just contractors and home builders.”
“I feel like he's ruining my God, and God will take him back,” McLaren said.
Edward Young also paid for a handicap-accessible bathroom, which is functional but not fully completed.
“I'm really distraught to think that this may not be over yet. There's more to deal with going forward,” he said.
He worries that unpaid subcontractors now have no warranty and a lien placed on his home, just as they have done for other customers of the company.
“I didn't sign up for all of them. I signed up for the restrooms that I can use because I can't move my legs,” Young said.
Two additional customers, David Scharett and Jeffrey Harris, also made payments for projects in December and January, respectively, but neither has yet begun work.
The contractor does not appear to be in compliance with the state's home builder law. The state's home builder law requires contractors to have the appropriate licenses for the scope of their work and to hold a bond if the work is worth more than $5,000.
Sam Kaufman only had carpentry and flooring licenses. His bail is set to expire in April 2022.
What should you do if you find yourself in this situation?
Jones says there's not much that can protect customers from situations like this, so it's best to do your research beforehand.
This includes verifying the company's license, bond, and insurance, he says.
“Relying on national intelligence like this isn't foolproof, but we shouldn't be able to do without it,” he says. “If you ask all these questions and still don't get an answer, you might need to be a little suspicious.”
read more: Here's what you need to know before hiring a contractor
Without such proper documentation, the debt may not be discharged in some cases, Jones said.
He says when a contractor files for bankruptcy, the first step is to hire a lawyer.
“I understand that you don't want to spend more money on someone if you've already lost a lot of money, but defending yourself in a bankruptcy case is virtually impossible,” he said.
It may still be difficult to get your money back, but if not, you should file a claim as soon as possible.
“I hope some of it comes back. I hope I get it all back,” McLaren said.
Meanwhile, the client continued to move forward with the project, some with the help of former employees who lost their jobs in the process.
“We have to continue. Somehow we have to pay part of the cost of all this twice, but you know, we will get through this,” Debow said. said.
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