Warranty Claims and a Bankrupt Company

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Bankruptcy Law Network has posted an article that discusses if a company going bankrupt is obligated to honor a warranty. It depends on the type of bankruptcy that was filed for.

If it was Chapter 11, there’s more of a chance that the company will honor your warranty that was purchased prior to filing for bankruptcy. One main reason is to maintain a positive business image.

If the company filed Chapter 7 then they aren’t obligated to honor a warranty, but might do so anyway to keep the same “goodwill” image.

Otherwise, you’re out of luck. This wasn’t a rip-off, this was just the bad luck of doing business with a company that didn’t make it. You’ve lost your warranty. The owners lost a significant asset, and the workers lost their jobs.

If you have questions regarding bankruptcy, feel free to contact us.

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