Have Legal Questions? Ask a Lawyer Now.
I'm happy to answer your question.
Bankruptcy causes what is called an "Automatic Stay" on all claims.
This means that the customer who did not receive what they paid for would have to file a "breach of contract" claim with the federal bankruptcy court and would have to establish their claim as valid by proving their case before being able to obtain a recovery.
Nevertheless, it would still go through the bankruptcy proceedings, and this means that even if they establish their claim, they get in line with the other creditors and will be paid according to the bankruptcy court's order.
Do this answer your question?
Since it seems you have stepped away, I'm going to switch over to Q&A format. If you need further information or would like to talk more, please let me know.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).