What to do if I paid a company for a custom desk that was supposed to be delivered several weeks ago but the company is now in bankruptcy?

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What to do if I paid a company for a custom desk that was supposed to be delivered several weeks ago but the company is now in bankruptcy?

How can I get my money back; the cost was $2700?

Asked on October 14, 2013 under Bankruptcy Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

You may not be able to get the money back. You can file a claim for the money with the bankruptcy court, but will be an unsecured, nonpriority creditory--the lowest category. You will be among a (presumably) large number of people all claiming money for various reasons, who will only be paid after secured claims (like mortgages) and priority claims (like employees' claims for pay) are paid; whatever is left over will be divided between you and the other unsecured creditors. You will most likely receive no more than, say, 25% of or so of you money, and possibly less; it will take months or years; and you will only get it after filing a claim in the bankruptcy action.


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