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LawTalk, Attorney
Category: Legal
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Commercial Bankruptcy Chapter 11. If a company takes

Customer Question

Commercial Bankruptcy Chapter 11.
If a company takes deposits from customers and then, before it fills the orders it files bankruptcy, should those customers who have paid deposits be listed as unsecured creditors to the bankruptcy court?
A competitor has filed and they have several customers that have paid them money and have not received their product. Wouldn't those people/companies also be listed as creditors?
Submitted: 1 year ago.
Category: Legal
Expert:  LawTalk replied 1 year ago.

Good morning,

I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.

Customers who have paid a deposit for services or products from a company, which after receiving the deposits files for chapter 11 bankruptcy, become unsecured creditors. They are then allowed to file an unsecured creditor claim with the bankruptcy court.

In the circumstance that you refer to, yes, the customers/companies who made deposits should be listed as unsecured creditors in the bankruptcy filing.

If the customer unsecured creditors are not given notice of their status soon after the filing, then they will want to ensure that their claim is considered. Perhaps the easiest way to do this is for them to file and serve a request pursuant to Bankruptcy Rule 2002 to be added to the service list and receive copies of all filings in the bankruptcy case.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

I hope that I have been able to fully answer your question. As I am not an employee of JustAnswer, please be so kind as to rate my service to you. That is the only way I am compensated for assisting you. Thank you in advance.

I wish you and yours the best in 2016,


Expert:  LawTalk replied 1 year ago.


This seems like a very crucial matter for you, and your questions and issues suggest that an in-depth conversation might best suit your needs. If you are interested, for a very nominal charge I can offer you a private phone conference as opposed to continuing in this question and answer thread which is searchable and viewable by the public.

Please know that I answered your question in good faith, and with the expectation that you would act similarly and rate my service to you. If I have already provided you with the information you asked for and you have no additional questions, would you please now rate my service to you so I can be compensated for assisting you?

Thanks in advance,