American Shingle files for bankruptcy

American Shingle and Siding, Inc., the Atlanta-based roofing company accused of defrauding hundreds of homeowners around the country, has filed for bankruptcy, owing creditors $10 million-$50 million, according to the Better Business Bureau.

The news does not bode well for consumers, many of whom filed insurance claims for new roofs that were never installed.

"It's probably the worst news that they could hear because at this point, looking at the amount of debts they're claiming and the amount of assets they're claiming, there won't be anything left for their creditors," Tom Bartholomy, the Charlotte BBB president told Consumer Ally. "So, if the bankruptcy petition prevails ... their customers that gave them thousands of dollars in insurance checks won't receive anything."