Let's say a company committs negligence of some sort, can a customer still bring a lawsuit against that company is they go bankrupt or files for bankruptcy??? Any sort of help would be much appreciated. Thank you in advance.
bush deathgrip
if they are bankrupt they have nothing for you to get.......and im guessing there are thousands of others in your position, depending on the situation and the size of the company
bottom line------there will be a very long line of people ahead of you.
James
There would be a period during which people who are owed money can submit to the court requests for the amount they are owed. The bankruptcy court would determine whether or not that would actually be paid or how much would be paid. If the bankruptcy has already been finalised and the company completely dissolved, you would have little to no recourse. If it was just restructured, and the company still exists, you could still sue them.
George D
What good will it do. They go bankrupt, you can sue, but when they are judged bankrupt you never get a penny.
tk
Yes you can still bring a lawsuit.
If the company does go into bankruptcy you may still have a chance to recover a judgement if you win your lawusit.
There are professionals who manage the collection of judgements. Your actual standing will depend on where you stack up in the formal order of debtor priority in your state. You may wish to consult a lawyer to determine your specific chance of recovery in your state, given the nature of your complaint and assuming you prevail.
Lastly, although a long shot, the court will allow an alter-ego attack against the corporation. If this suceeds you can then gain access to the personal assets of the owners of the corporation. If this is a large corporation, this is probably not a possibility. If this is a small private corporation, better chance here but only if the money you are claiming as damages are substatial. Lastly, a tort cause of action will allow you to collect potential punitive damages as well.
Not a lawyer....suggest you see one and get a free consultation.
huck_fumble
Yes you can sue the company. but ....
The effect of the filing of a bankruptcy is to place an automatic stay on all litigation against the company pending resolution of the bankruptcy. In other words, your case will be put on hold until the bankruptcy is resolved.
You may petition for relief from the automatic stay on grounds including fraud, and continue with the lawsuit. But on the facts set forth above, it probably will not be possible.
What happens next depends on the type of bankruptcy (Chapter 7 or 11). I am not a bankruptcy attorney, but I believe that a consumer claim (absent other factors) will be discharged in a chapter 7 (i.e you get nothing). In an 11, the debt will be reorganized and you may be able to obtain a percentage of your claim, depending on factors too complex for this space.
If you are not under the gun (i.e. if the statute of limitations period is not coming to and end soon), your best bet would be simply to file a claim in bankruptcy (get the form from the clerk of the court where the bankruptcy was filed - or check online). If and when a final resoltuion is obtained, you will be grouped with all of the other general unsecured creditors of the company, and get a proportional amount if appropriate.
The issues are complex, and if your claim is substantial, it would be best to consult with a bankruptcy attorney in your area.
Good Luck
booboo
You need to contact the Bankruptcy court and file a claim against the remaining assets of the company and they put you
on a list in order of the claim. Creditors come first and if there's anything left and other claimants split it up.
Dr. Luv
yes...the laws of corporations require that in the dissolution process( closing of the company) money is set aside for creditors or subjects of law suits before any of the shareholders are paid their profits it there are any...you just have to get in before the process is finalized....even in bankruptcy corporations are not immune for rightful lawsuits.
Now the key is to see if the corporation did something wrong....if they acted in an untravires manner or another wrongful manner you can pierce the corporate viel...or in otherwords sue the owners or shareholders directly...if you get an attorney he can explain this alot better than I can on here...especially considering your state's business practices law.
Orignal From: If a company files bankruptcy or goes bankrupt, could a person still sue that company?
Post a Comment