What would happen if I filed a counter claim against a company who filed bankruptcy? 10 Answers as of October 28, 2011
I am a Student and I have been looking for an answer to how much it would cost to file a counter claim against a company who declared bankruptcy, I do not know what kind of bankruptcy, Chapter 7, 11 or 13 however the scenario involves payment of $150,000 for 5000,000 brochures and only 365,000 brochures were delivered. I estimated the cost of the remaining brochures which were not delivered to be around $40,500 and I only want to know if it would be a good idea to get involved in the bankruptcy proceedings to collect either my merchandise I paid for or to just let it go. I hope you can give me an answer and what the filing fees, attorney fees and other related cost such as employee time lost would cost me if I were to pursue litigation with this company to recoup my money or product. I need to know what my chances would be if I sought legal recourse for their actions.Free Case Evaluation by a Local Lawyer!
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AZ Law Group of Trezza & Associates | Stephen Trezza
With that kind of money at stake you must invest the time in a free consultation with an attorney so he can asses the entire situation and offer an opinion.
Answer Applies to: Arizona
Replied: 10/17/2011
Guardian Law Group PLLC | C. David Hester
You would need to file a proof of claim with the BK Court, you may or may not ever receive any money, as there are other priority debts above yours such as employees wages. It would also need to be done in the time required by the BK court. There are time limits for any making a proof of claim in a BK and if you are past that time you may not be able to do so. You need an attorney with experience representing creditors in a BK.
Answer Applies to: Utah
Replied: 10/12/2011
The Schreiber Law Firm | Jeffrey D. Schreiber
If it was a company, it cannot file Chapter 13, so it must be either a Chapter 7 or 11. In all events you cannot sue the company since bankruptcy law prohibits suing them while they are in bankruptcy. If it was a Chapter 7, unless it states on the notice that there are assets and to file a claim (Proof of Claim form discussed below), it has nothing and the amount owed to you is discharged and no lawsuit can be brought against them to collect. If it was a Chapter 11 there may be payments which will be paid to creditors eventually and you need to file with the bankruptcy court a bankruptcy form called a Proof of Claim where you list the amount you are owed and documents which substantiate that amount.
Answer Applies to: California
Replied: 10/12/2011
Ashman Law Office | Glen Edward Ashman
As a general rule, you cannot sue someone in bankruptcy.
Answer Applies to: Georgia
Replied: 10/28/2011
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
You can file a "proof of claim" form stating how much is owed. You may get paid nothing, something or all depending on how much assets are in the bankruptcy. Filing an adversary proceeding (a lawsuit) in bankruptcy is an expensive undertaking (thousands of dollars) and is basically only done when there is fraud or intentional wrongdoing. Consult an attorney to discuss your rights in this regard.
Answer Applies to: California
Replied: 10/11/2011
Law Office of Harry L Styron | Harry L Styron
You should be able to find out the type of bankruptcy from the office of the clerk in the jurisdiction where the bankruptcy was filed. In any event, you should file a claim in the bankruptcy court, because you cannot commence suit anywhere else for any debt. You have what is called an executory contract. Depending on the type of bankruptcy you may be able to get some of your money back in proceedings in the bankruptcy court. You can get the claim form from the clerk of the court, and you can file it yourself. If the bankruptcy was a Chapter 7 liquidation, then it is unlikely you will get anything. If it was a Chapter 11, then there is the possibility that you will get your brochures or some repayment.
Answer Applies to: California
Replied: 10/11/2011
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You would have to prove they committed some kind of fraud, (like maybe they took your money shortly before filing bankruptcy. You will have to sit down with a lawyer to figure out cost and risk. As it stands now you don't even know which chapter they filed.
Answer Applies to: California
Replied: 10/11/2011
Heupel Law | Kevin Heupel
These type of issues can get expensive and consume a lot of your time. However, there is a lot of money at stake. I would suggest that you contact the trustee who has been appointment to oversee the bankruptcy. The trustee can give you an idea if there will be any property to distribute. From there, you could contact a bankruptcy attorney who specializes with creditors to assist you.
Answer Applies to: Colorado
Replied: 10/11/2011
The Law Office of Darren Aronow, PC | Darren Aronow
There is no direct answer to that question since we do not know what kind of bankruptcy this is and if there are assets to distribute. In essence, it sounds like you are a creditor to the company filing bankruptcy and you should file a "proof of claim". This gives notice to the trustee that you believe you are owed this money in case assets are discovered. You should see an attorney quickly because there is a time constraint on how long you have to file a proof of claim. As far as how much it will cost, that will depend on how much litigation is necessary, if it is at all necessary. If you file the proof of claim, then the trustee will send you your proportionate share of any assets seized without filing for any litigation.
Answer Applies to: New York
Replied: 10/11/2011
