Legal Question in Investment Law in Colorado

default of investment contract

Colorado. I invested 40k with a contract guaranteeing that if the payments to me were in default, the person would return my money to me within 30 days. He is now saying he is going to file bankruptcy. How can I get my money back?

Asked on 1/15/08, 11:52 pm

1 Answer from Attorneys

Re: default of investment contract

Unless the obligation to repay you was somehow secured (i.e., with a deed of trust on real property or a UCC-1 financing statement based on a security agreement, you will have an unsecured debt in bankruptcy. There may be certain rights of priority you may have if this was a consumer contract. You may be able to file a lawsuit for the money, although the suit would be stayed (placed on hold) if the debtor filed for bankruptcy. My suggestion is that you contact a bankruptcy lawyer representing creditors and see what you can do.

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Answered on 1/21/08, 3:44 pm

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