Legal Question in Consumer Law in California

Getting refund from a Bankrupt Company

I was doing business with Sherwood Shutter Corp., on 9/19/07 I put 50% down on my order and was told it would take 90 days for delivery. on 11/09/07 I received notification from the Sales Rep that the company went bankrupt and is supposedly in court ordered closure. I was told to call the court appointed bankruptcy trustee to get info on how to file for a claim.

When I called the number I spoke to a person who told me that Sherwood Shutters Corp received a court order shut down on 10/04/07.

When I looked on the internet I saw an article on ''Business Week.Com'' that Sherwood Shutters filed for Chapter 11 with the Bankruptcy courts for the Central District of California on June 8th 2007.

My question is a 2 parter.

1) Since Sherwood Shutters filed their paper work for chapter 11 on 6/8/07, and I placed my order on 9/19/07 couldn't this be considered a form of fraud? Since this company knew that they might not be able to fill the order wouldn't it be illegal/fraudulent for them to keep on taking orders and money?

2) What are my chances of getting my money back or recourse since the company is shut down and in court ordered bankruptcy?

Thank You!

James


Asked on 11/09/07, 9:19 pm

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Getting refund from a Bankrupt Company

You are going to have to file a claim in bankruptcy. Go to the Central District Bankruptcy court website (www.cacb.uscourts.gov) and download the form and send it in. The good news is that a Chapter 11 filing probably means there is enough money to pay you.

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Answered on 11/10/07, 12:34 am


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