Quoted from Razorbak86:
Shortly after the petition is filed, the Company's officers would be required under federal law to file a comprehensive Statement of Financial Affairs ("SOFA") and a detailed Schedule of Assets and Liabilities ("Schedules").
To further clarify this statement, the Debtor/TBL would have 21 days under federal law to answer this "petition" which they most assuredly would.
Then there would be a hearing set up to determine the validity of the petition and whether or not the judge believes there is sufficient evidence to allow the bankruptcy to move forward. "Shortly" can mean months.
For the deposits to qualify as a "claim" under 11 US code 101 is as follows:
"(5) The term “claim” means—
(A) right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured; or
(B) right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured, or unsecured."
Thus we are talking about proving up subsection (B) and breach of performance via promissory estoppel or some other remedy.
Plenty of material for TBL to muddy up the waters and delay this whole thing for months, and then IF by some miracle the judge allowed the bankruptcy to proceed, if DP hadn't gotten it together, DP could easily shift it to a Chapter 13 and pay off the deposits on a schedule and over a much longer time period.
A involuntary bankruptcy filing can't hurt TBL anymore than it would hurt Jpop, try it out and see what happens, and who the losers are.
As long as they can avoid personal liability, they could just go along with shutting down the business, pay off the debts and distribute the assets and THEN open up under another entity IF anyone would ever give them a dime.
So at the end of the day, the damage these guys do to themselves by lack of transparency and communication goes WAY BEYOND any the impact of any legal redress you might get in the courts.
The lesson from Skitb, DP and Jpop? Buyer beware!
There are SIMPLE steps that could be put in place before pinheads give these terrible stewards of our funds anything.
It starts with a "TRUSTEE" and escrow in the first place. If you need the "Bankruptcy Trustee" to take over, then, well its OVER anyhow.