Signed up my kid for Summer Camp at a place that has been in business for 40 years. Paid for in full $500. 2 days before I was notified that the business will be closing and providing no refunds. What can I do?
Hello and welcome,I am sorry to hear of your difficult decision.Do you know whether the company has filed for bankruptcy protection?
I do not think so. Would I not receive a notice that it was filed? I think they just closed the doors and disolved the company which I believe was an S Corp.
I see.If you give me the name of the company, I can look to see whether they are still active in the state or not.If bankruptcy is filed, they will normally list all creditors that may have a claim against the company in the bankruptcy case, so you should receive a notice that bankruptcy has been filed. If they do not list you though, you would receive nothing.I would contact the clerk of the local bankruptcy court on Monday and see whether there is a case pending for this company. If there is, you would typically file a "claim" with the bankruptcy court so you would be eligible to receive a refund of the amount you have paid. Usually, customers and creditors will receive a fraction of what they paid in a bankruptcy case, but it may be worth pursuing in any case.A complaint can also be filed with the local BBB and state consumer protection agency, but those may have little effect if the company really is going out of business.
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I will contact the local bankruptcy court on Monday as you suggested. Assuming they have not what are my options? There are also additional 200 ticked off parents. Can we file a class action suit or should we just move on?
Since there are so many parents involved, it would be best to retain a local attorney, whether or not bankruptcy has been filed, as the attorney could represent them collectively in bankruptcy court, or in a suit against the company, which could go forward even if dissolved, if it is filed quickly enough.I would look for a local attorney who has business law and bankruptcy law experience (in the event they have filed for bankruptcy protection) since general knowledge of bankruptcy laws may be needed.
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