Venue going bankrupt - I know there are a few lawyer ladies here

shoegal715 · December 2010

I just received an e-mail that my venue will be filing for bankruptcy. I'm sitting in class right now, so can't call anyone for advice - only sit here and worry for the next 2 hours. I'm wondering if someone can help me now.

I secured the deposit back in January for $5,000 for my wedding using a VISA cheque. Am I secured creditor, or do cheques not count? Has anyone had experience with this? Will the bank reimburse me right away, or do I have to file paperwork and go through the courts?

When we were looking to book a place we were down to two we loved. I just hope to god the other one is still available. FML

Rosie109 · December 2010

Did they cancel your wedding? Just because they are declaring bankruptcy doesn't mean they still can't function as a business, unless they cancelled your wedding.

shoegal715 · December 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_etiquette_venue-going-bankrupt-there-lawyer-ladies-here?plckFindPostKey=Cat:Wedding%20BoardsForum:9Discussion:1fdb5b95-d787-487b-8969-12f2281effa2Post:aada4d95-eedb-4a49-8223-92f756b9b7a8">Re: Venue going bankrupt - I know there are a few lawyer ladies here</a>:
[QUOTE]Did they cancel your wedding? Just because they are declaring bankruptcy doesn't mean they still can't function as a business, unless they cancelled your wedding.
Posted by Rosie109[/QUOTE]

<div>No, they did not cancel. I just assume that since they have no money, they can't operate. I always thought bankruptcy = seizing operations. </div><div>
</div><div>The e-mail was not from the company, but a good friend from HS who works there. </div>

Rosie109 · December 2010

I believe its chapter 13 for businesses that allow for a reorganization so that the business can continue functioning. You might want to get a better idea of what actually going on before considering going to a lawyer to get your check back.

laurenclaire1386 · December 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_etiquette_venue-going-bankrupt-there-lawyer-ladies-here?plckFindPostKey=Cat:Wedding%20BoardsForum:9Discussion:1fdb5b95-d787-487b-8969-12f2281effa2Post:4e2c347f-3539-4a60-a555-da3c7014ecce">Re: Venue going bankrupt - I know there are a few lawyer ladies here</a>:
[QUOTE]In Response to Re: Venue going bankrupt - I know there are a few lawyer ladies here : No, they did not cancel. I just assume that since they have no money, they can't operate. I always thought bankruptcy = seizing operations. The e-mail was not from the company, but a good friend from HS who works there.
Posted by shoegal715[/QUOTE]
Not necessarily. Filing for bankruptcy isn't something that happens over night. Depending on your contract and what you signed, they might be legally bound to continue forward with any business they've already agreed to do. It might be the case that they just won't be signing any new contracts. Bankruptcy does mean you don't have any money, but it's not a magic word that means they don't have to do what they've already agreed to do or have zero money right this second. They'll have the liquidate their assets, have a financial person look over their books, etc. Bankruptcy proceedings can take a really long time.

redheadfsu · December 2010

1. The business may still be operational.

2. You are not a secured creditor.

3. Talk to a local lawyer.

squirrly · December 2010

Contact the venue directly first. Find out what's going on. Don't go calling a lawyer based on hearsay.

shoegal715 · December 2010

Ok, thanks for the advice.

WWYD if you were me? Call the company and ask what's next? (they have not notified any brides yet), or do I wait for them to call me?

One of my friends had her bridal salon go bankrupt. They didn't inform anyone - literally just locked the doors (with the dresses still inside) and disconnected the phones. That was in January and she's still waiting for her money.

redheadfsu · December 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_etiquette_venue-going-bankrupt-there-lawyer-ladies-here?plckFindPostKey=Cat:Wedding BoardsForum:9Discussion:1fdb5b95-d787-487b-8969-12f2281effa2Post:de5bc40e-8b8e-4bd8-9ddf-a2c5e0d98b85">Re: Venue going bankrupt - I know there are a few lawyer ladies here</a>:
[QUOTE]Ok, thanks for the advice. WWYD if you were me? Call the company and ask what's next? (they have not notified any brides yet), or do I wait for them to call me? One of my friends had her bridal salon go bankrupt. They didn't inform anyone - literally just locked the doors (with the dresses still inside) and disconnected the phones. That was in January and she's still waiting for her money.
Posted by shoegal715[/QUOTE]

Your venue may still be operational, so you might still have your wedding there.

If they have closed their doors, it *(getting your money back)* may need to be handled through the bankruptcy proceeding.

edit: (to clarify) If they filed, everything would be handled through the bankruptcy proceeding. But if they are operational, then they might still fulfill your contract without much of a headache.

Now if they closed their doors you will have to get your money back through the bankruptcy proceeding.

kikibaby · December 2010

Call them.

Loopyseven · December 2010

I'd call them and see if someone can give you more information about what is going on.

impslave · December 2010

First, find out from the venue if they are filing for Chapter 11 (business reorganization). It could be that they are filing BK to cover themselves while they restructure the business (debt, employment, etc.). There may be a chance that they will close for a while, then reopen under a new name, new management and such.

Should the venue close completely and you do not receive a refund, you would have to file a proof of claim for the unsecured debt that is owed to you. You can Google for the bankruptcy court office in your area and get information from a court clerk.

HTH!

squirrly · December 2010

Yeah, just as a reminder - a bunch of airlines filed for bankruptcy after 9/11 and kept flying. Delta screwed their shareholders, but not their customers. (Well, not any more than any other airline does, anyway.) Chevy declared bankruptcy and took a government bailout, but kept making and selling cars until they could emerge again. Plenty of businesses, big and small, use bankruptcy to fix things in their financials without closing the doors.

Call them. Get info now and THEN you can consider panicking.

wadingmoose · December 2010

How close are you to the friend who emailed you? Because contacting the venue may get him/her in hot water for contacting you.

andy71781 · December 2010

I agree call them. Then call a local lawyer if there is any concern on your part. You would be suprised about the number of companies in bankruptcy that are fully functional.

Nebb · December 2010

You should call your lawyer uncle, he gives great advise.

shoegal715 · December 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_etiquette_venue-going-bankrupt-there-lawyer-ladies-here?plckFindPostKey=Cat:Wedding%20BoardsForum:9Discussion:1fdb5b95-d787-487b-8969-12f2281effa2Post:7de7977e-2f14-4d54-9ccb-aceca65836fe">Re: Venue going bankrupt - I know there are a few lawyer ladies here</a>:
[QUOTE]You should call your lawyer uncle, he gives great advise.
Posted by Nebb[/QUOTE]

<div>HAHAHA </div><div>
</div><div>ps - it's advice :) </div><div>
</div><div>And to Moose - I was thinking that too. I'm not that close with her, but she's a really sweet person, I just don't think she put two and two together and that if she told me, it could get herself into trouble. </div><div>I'm going to wait until Monday and then call the venue. Thanks for the help! </div>

Nebb · December 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_etiquette_venue-going-bankrupt-there-lawyer-ladies-here?plckFindPostKey=Cat:Wedding BoardsForum:9Discussion:1fdb5b95-d787-487b-8969-12f2281effa2Post:4cd5681f-f153-4c30-adea-926b5ba06a25">Re: Venue going bankrupt - I know there are a few lawyer ladies here</a>:
[QUOTE]In Response to Re: Venue going bankrupt - I know there are a few lawyer ladies here : HAHAHA <strong>ps - it's advice :)</strong> And to Moose - I was thinking that too. I'm not that close with her, but she's a really sweet person, I just don't think she put two and two together and that if she told me, it could get herself into trouble. I'm going to wait until Monday and then call the venue. Thanks for the help!
Posted by shoegal715[/QUOTE]

*shrugs* who cares. Maybe theyre going bankrupt because of customers committing credit card fraud. :)

shoegal715 · December 2010

Good one!! Ps - you get bonus points for spelling everything correctly!

sister2groom · December 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_etiquette_venue-going-bankrupt-there-lawyer-ladies-here?plckFindPostKey=Cat:Wedding%20BoardsForum:9Discussion:1fdb5b95-d787-487b-8969-12f2281effa2Post:4cd5681f-f153-4c30-adea-926b5ba06a25">Re: Venue going bankrupt - I know there are a few lawyer ladies here</a>:
[QUOTE] I just don't think she put two and two together and that if she told me, it could get herself into trouble. I'm going to wait until Monday and then call the venue. Thanks for the help!
Posted by shoegal715[/QUOTE]

I would contact them today (because there's no way I would be able to sleep over the weekend otherwise) and see if you can get any information without letting them know you heard about the bankruptcy. Like if you set up an appointmentfor a month from now to go back to look at the venue or meet with them. If they act cagey about setting up future appointments that might tell you something.

I also don't know anything how to fille bankruptcy, but isn't it public record? If you could find (obviously I wouldn't spend much too much time trying to do this, but it MIGHT not be too hard) something that's public information, maybe you could bring that to the venue's attention.

Oh, and you might be able to call VISA check and ask them about your options (not that you would follow through on them before the venue had told you anything) but VISA might be able to give you some hints.

Moneypenny424 · December 2010

Like everyone has said, you need to call them. Lots of companies file for bankruptcy and you'd never know. It doesn't mean that your wedding will be canceled; however, I'd call today. Don't say how you heard, but try to get some answers or assurances. Do it today--if you wait until Monday, you'll likely be envisioning scenarios worse than reality.

shoegal715 · December 2010

Thanks for the advice everyone.

Just a bit of an update. I was able to contact my bank, and I AM a secured creditor. I'm Canadian though, so that might explain the discrepancy between what was mentioned above. My bank will reimburse me when they seize operations (the person who mentioned they can still work was right).

I also called my venue, and surprise, surprise - no answer. Called 3 different times and then finally left a message. I can't imagine that poor bride who is getting married this weekend.

Anyway, nothing can proceed until it's definite that they have filed and will be seizing operations, or until they lock up the doors and get out of town.

I'm going to go Monday and place a $500 deposit down on my second choice venue. $500 is totally worth the peace of mind.

Thanks again.

redheadfsu · December 2010

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_etiquette_venue-going-bankrupt-there-lawyer-ladies-here?plckFindPostKey=Cat:Wedding BoardsForum:9Discussion:1fdb5b95-d787-487b-8969-12f2281effa2Post:a134022c-5a68-483b-9c05-54fc152d73d1">Re: Venue going bankrupt - I know there are a few lawyer ladies here</a>:
[QUOTE]Thanks for the advice everyone. Just a bit of an update. I was able to contact my bank, and I AM a secured creditor. I'm <strong><u>Canadian </u></strong>though, so that might explain the discrepancy between what was mentioned above. My bank will reimburse me when they seize operations (the person who mentioned they can still work was right). I also called my venue, and surprise, surprise - no answer. Called 3 different times and then finally left a message. I can't imagine that poor bride who is getting married this weekend. Anyway, nothing can proceed until it's definite that they have filed and will be seizing operations, or until they lock up the doors and get out of town. I'm going to go Monday and place a $500 deposit down on my second choice venue. $500 is totally worth the peace of mind. Thanks again.
Posted by shoegal715[/QUOTE]

ok yeah, that makes a huge difference. I have no idea how Canada treats bankruptcy. I think most of the info was based on USA law. You should really call a local lawyer then.

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