Can you pay yourself???
Find answers to your legal question.
Can you pay yourself???
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We had a house fire and the insurance company offered us 20,000 less than what another contractor put the bid in for. My husband has a contractor license, so we did the job ourselves, question is, the mortgage company that has our money from our insurance company will not allow us to pay ourselves for the work we do, is this legal? Why can't we pay ourselves for the work we do?
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Linda S
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You can't pay yourself because it will look like fraud. Even though it is not fraud . If you had friends in the business you could have routed the billing through their company and shown yourselves as employees. |
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macbeth00798
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Because you did not have any out of pocket labor expense. They are not obligated to reimburse you for anything you did not have to pay out of pocket. |
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jmd72inva
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it is legal...if your husband did not bid the work, the bank won't honor it |
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~Julina~
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it really doesnt count if you pay yourself |
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SAMD010
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IF you could pay yourself then obviously you could sue yourself! Lets' say that you and your husband had a labor dispute and that caused the two of you to do a screwed up job on your own property. Therefore, you never want to do it . . . ALWAYS leave it open as ONLY a last resort . . . but anyway YOU take YOURSELVES to court. After several months of bickering back and forth you finally win the lawsuit with yourself. Suppose that because of yourself being out so much money for legal fees that you can't meet your financial obligation . . . Thus, you have to commit to Bankruptcy and take everything to Bankruptcy Court. Do you take yourself's property for some pre-negotiated terms; that is to say that you actually settled with yourself out of court? I bet that your insurance company is going to raise your rates . . . Especially if you and your husband write yourselves that big check! Also, I want to see you explain that "write-off" on your Income Tax. I think the IRS is going to frown big on that one . . . What do you think? Huh? |
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Opa
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Its a conflict of interest. If you do it yourself.
Its to easy for you to do a slight of hand when you are your own contractor.
The insurance company wants to make sure the money goes to the whole job and not short changed for a financial gain on your part.
I did insurance repairs and burn outs for twenty three years in Calif. for the insurance industry. |
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Chief
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If he is a licensed contractor you need to prove it to the insurance company, and you will get the money. Speak with an attorney to get this taken care of. It won't cost too much, and you stand to get a lot out of it. |
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Rushcamo
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if they say you can do it then hey pay yourself! |
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George M
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i ant a lawyer but common sense must come in some where so i think you can pay yourself |
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Perplexed
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As long as your husband owns and operates a legitimate and properly licensed home remodeling company, and if you submit a bill from your husband's company on the company's invoice document detailing everything that you did, why not.
Then it would be a legitimate company charging a customer for legitimate work. And your company will pay tax on the profit income.
But if you just want to do the work as an individual and ask the insurance company to pay you, good luck. |
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lolalenox
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I dont think that thats legal, but you were in a tuff situation because your husband is a contractor and it woudlnt have made sense to pay someone else to do what he already knows how to do.
I would advise that you speak to a lawyer who his well versed on the subject as soon as possible. |
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TrevorG
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idk but to me it sounds like your in a real mess :) |
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