Chapter 7 Bankruptcy Lawyer Helping Brides in Alfred Angelo Case
Brides who were injured by the recent bankruptcy filing and closure of Alfred Angelo, a large bridal retail chain, could use the services of a Chapter 7 bankruptcy lawyer. The 84 year old company closed its retail stores on July 13, 2017 without warning and filed for Chapter 7 bankruptcy protection the following day. With over 60 locations in the United States, Canada and Europe, the sudden closure of the company disrupted wedding plans for thousands of brides who ordered their gowns from Alfred Angelo, causing emotional as well as financial losses. Alfred Abel, a Pennsylvania bankruptcy lawyer, describes the aftermath of Alfred Angelo’s bankruptcy and what it means for their brides.
Aftermath of Chapter 7 Bankruptcy
The Chapter 7 Bankruptcy Trustee initially attempted to fulfill outstanding orders, but a few weeks later announced that it would no longer fill outstanding orders and that, “to the extent any order has not been fully delivered to a customer, it shall have to remain unfilled.” Customers, who had typically paid deposits of 50-80% of the total purchase price, were advised that they could make a claim for a refund by following a link on the company website. However, claims are paid in order of priority, and unsecured creditors (such as the unfortunate brides who paid deposits, but never received their wedding dresses) could be relegated to the bottom of the priority totem pole, and end up with little or nothing. In order to obtain the best recovery under the circumstances, a Chapter 7 bankruptcy lawyer should be consulted.
Resolution for the Brides
Alfred Abel, a Chapter 7 bankruptcy lawyer, is helping brides in the Alfred Angelo case. It is probable that most of the injured brides are unaware of the provisions of the Bankruptcy Code which might allow them to file a ‘priority’ claim for up to $2,850. In order to benefit from these provisions, it is necessary to file a properly prepared proof of claim along with the documents required to show entitlement to priority treatment. This would give at least $2,850 of the total claim a ‘leg up’ in the priority stakes and, although it does not guarantee payment, it does increase the chance of a recovery. Also, any deposit more than $2,850.00 could also be paid as a general unsecured claim, assuming that money was available to pay it.
While, ordinarily, the injured brides would be able to file a lawsuit against the company to recover all of the damages suffered (both financial and emotional), a Chapter 7 bankruptcy lawyer would advise that this option is severely limited by the Automatic Stay (which stops lawsuits against the debtor immediately upon filing for bankruptcy) and, in any event, any judgment obtained would likely treated as general unsecured debt, i.e. at the bottom of the claim totem pole. The best course of action for injured brides would be to contact a Chapter 7 bankruptcy lawyer to learn about the various options, the costs involved, and the chances of success.
Speak to a Chapter 7 Bankruptcy Lawyer at Alfred Abel Law Offices
If you have been a victim due to a bankruptcy contact a bankruptcy lawyer at Alfred Abel Law Offices to learn more. An experienced Chapter 7 bankruptcy lawyer in Philadelphia, Jenkinstown and Plymouth Meeting will provide guidance about your options to help ensure that you receive compensation. Contact our law offices today for more information.