Quote:
Originally Posted by
Cook
Just out of curiosity, in general, if any type of mail order online company declares bankruptcy..
1. Would it be a public record filing ?
2. Would everybody lose all their money ?
My apologies if this is the wrong thread for this question.
(Just a general question for any online company)
*** I am not an attorney and this is not legal advice.***
It's a public record. Bankruptcy is federal civil law. You can keep track of it just like any federal suit on PACER.
Each bankruptcy is different. There are various bankruptcy chapters which operate differently. It depends on the assets & debts of the bankrupted entity and their legal organization. It depends on whether they are restructuring or simply insolvent.
Creditors can notify the court of their debt claim. Valid claims will be paid by the trustee as ordered by the judge in a hierarchical order. Secured debt will usually recover a percentage of the balance due. Unsecured debt may or may not be paid after all secured debt is paid.
A customer who bought an item more than six months ago (within six months credit card companies and PayPal will usually reimburse you) and doesn't receive it because of the seller going bankrupt has little to no recourse since it simply isn't worth the fight. A customer with thousands of dollars in orders lost might recover some of it.