business went belly up
We're almost finished with an upstairs bonus room and I called the person we ordered the carpet from ( have known her and have had successful business dealings with her over the past 20 years). I knew the carpet was in and was being held in a distribution warehouse. We have already paid for the carpet in full and I assumed she had paid for my carpet with the money I paid her. As I mentioned, I called to arrange for installation only to have her tell me that the carpet is being held at the distribution center, but it won't be released because she still owes a balance of $3,000 which she does not have. She apparently used my money to pay for prior orders and was counting on doing the same thing to pay for my carpet. But the business continued to do poorly and she filed for bankruptcy. I've never been in this situation before. What happens now?