Originally Posted by spl152db
I'm trying to help matt get the fire sale started and the money back to you guys. This should work out for everyone I hope.
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One thing to remember is that it might appear to be a good idea at first, but then unknowingly make matters even worse for customers later. This may or may not happen here, but something to think about just in case it can happen.
There were laws put in place after the big Enron fiasco where they paid people lots of money prior to filing bankruptcy. It has to deal with 'preferential treatment' before a company finally goes down. Courts can......and will get any money back that a company pays out after it is known they are finished. And those courts can go back 90 days from when the company closed it's doors and/or filed bankruptcy. ED said they officially closed Aug 31. Any money sent out 90 days prior to that, and certainly any after that can be pulled back in by the courts......months from now. And if good records aren't kept for who got that money, the person sending it out or helping can be in some very serious trouble. Trying to do the right thing could actually bite you in the rear later.
The big companies that ED dealt with have likely already had their lawyers file cases. Customers will be last on the list, if they are even looked at at all.
If someone is owed $2000 by ED and they get it, the courts could ask for it back months from now. So the person could be very happy to get the refund, go out and spend it, only to find that they now have to give it back later so the money can go to pay other creditors first. It falls under that 'Preferential Treatment' because why did you get money when others did not? You will have to send the money back so the courts can pay the huge lawyer fees, then pay the big time creditors with the best lawyers, then divide out the remaining (if there is any) between everyone else.
Maybe that won't happen in this case, but if there are hungry lawyers out there working for a big creditor, I would not be surprised to get a letter like that later down the road.
I did contractor work for a very well known national company 10 years ago. When it was learned that the company was far in debt, stopped paying bills and vendors, everyone started asking for their money. I was getting $9800 per month and they hadn't paid me in 3 months. I told them I would stop services if they didn't pay. So they sent me $9800. The next year I get a letter from the bankruptcy lawyers demanding the $9800 back to pay for vendors that had secured debt! And if you don't pay it back, they can and will file suit against YOU.
If ED was over and done with Aug.31, I'd say time is up to get any money back. I'm not a lawyer, and this could or could not hold true here. But as mentioned, depending on the amount of debt and how hungry lawyers are, it wouldn't be out of the question either way. You might be mad right now with no refund, but trust me, you'll be more mad if you have to send a refund back......next year after you already bought something else.