Forum Discussion
msmith1199
Feb 26, 2015Explorer II
Something to add to the above, if you give a company money and they have not delivered the product to you yet, and they go bankrupt, they legally cannot give you your money back even if they have it. Once they file the bankruptcy you become a creditor and you're only going to get paid back through the approval of the bankruptcy court. And you'll get put in line based on the type of creditor you are. Having a deposit on merchandise not delivered actually puts you high on the list. You are above any of the companies non-secured debt like their own credit cards. But other things are ahead of you. Like employees salary is ahead of you, all the tax agencies are ahead of you, and secured debt is ahead of you like mortgages on the buildings. So once all those people get paid with the remaining assets of the company, then you get yours. So that means, you won't get yours because if the company had money to pay all those debts they probably wouldn't be bankrupt to begin with.
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