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.
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
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