In Re Frank Salazar in Re Margaret Salazar, Debtors, Frank Salazar Margaret Salazar v. Kathleen A. McDonald Armando Flores Christine Flores

Frank and Margaret Salazar, the debtors in a Chapter 13 bankruptcy proceeding, appeal the decision of the bankruptcy appellate panel which affirmed the bankruptcy court’s determination that Armando and Christine Flores have a priority claim in bankruptcy. We affirm.

BACKGROUND

The Salazars owned a swimming pool contracting business, and the Floreses hired them to build a pool at the Floreses’ residence. '■ The Floreses agreed to and did pay the full amount of the purchase price — $30,829—at the time that they entered into the contract, and the Salazars commenced work. They never finished the job. By the time they filed for bankruptcy some 17 months later, the project was just 50-70 percent complete. The Floreses, acting pro se, filed an answer to the petition in bankruptcy on March 22, 2002. That was filed within the time for filing a claim, but they did not file a formal proof of claim until later.

In their formal proof of claim, the Floreses sought to have their claim treated as secured. The Salazars ultimately objected to the claim, and the bankruptcy court determined that the claim was not secured at all. But, said the court, it was a priority claim to the extent of $2,100.…