Legal Question in Consumer Law in Canada

Consumer Rights

I ordered and paid for 2 computers from Patriot Computers. They took my money, promised delivery by Xmas, and on December 7th, they filed for bankruptcy. So now i'm out of the 2 computers and $1600.00. What exactly are my rights, and how do i go about being compensated for my loss?


Asked on 12/23/00, 12:39 am

1 Answer from Attorneys

Stuart G. Brecher Law Offices of Stuart G. Brecher, LLC

Re: Consumer Rights

You need to find out where the petition was filed (the district) and what chapter the petition was filed under, i.e., 7 (liquidation) or 11 (reorganization). Under chapter 7, a trustee will be appointed to administer the case and liquidate the assets for creditors, who, depending on their priority status under the code, may or may not realize a dividend on thier claims. Under chapter 11, the company may continue to operate under the protection of the court in an effort to restructure and emerge from chapter 11 or liquidate through one or more sales of its assets. You should file a proof of claim for $1,600 with the requisite back-up (as a priority creditor having paid a deposit toward the purchase of consumer goods pre-petition) in the case and file it with the clerk of the court where the petition was filed; then hope that at some point you collect a dividend on your claim. Not much more you can do. Good luck.

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Answered on 12/27/00, 9:18 am


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