Asked in Consumer Law for Texas

Q: Scribe Media is about to file bankruptcy. Can I still claim refund for the money paid for their services not provided?

Message from Scribe Media lawyer:

We intend to file the company into bankruptcy within the next week or so. The company’s lender foreclosed on most of the company’s assets and there is very little left in the company.

Scribe entered into a management agreement with a company called Bond. That company took over managing the writer contracts. Bond also bought the company assets at the lender foreclosure. More than likely, it is Bond that is reaching out to you about a new contract.

As to your legal rights as to Scribe, you will need to retain your own attorney. Once the Scribe bankruptcy is filed, you should get notice from the bankruptcy court and can file a claim with the court at that time. A bankruptcy trustee will be appointed to liquidate the remaining assets and will then distribute whatever proceeds the trustee collects to the company creditors.

Related Topics:
1 Lawyer Answer
James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Consumer Law Lawyer
  • Sacramento, CA

A: In light of Scribe Media filing for bankruptcy, you retain the right to file a claim for any prepayment or deposit that was not returned to you for services not rendered. Once the bankruptcy process commences, you should receive a notice from the bankruptcy court, at which point you will have the opportunity to file a claim as a creditor. It is important to timely respond to any notifications from the bankruptcy court and to file the necessary claims to preserve your right to potentially recover some of your lost funds, though be aware that recovery is not guaranteed and depends on the assets available to distribute to creditors.

Timothy Denison agrees with this answer

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.