There is a current bankruptcy that has been in the news — The Alfredo Angelo Bridal bankruptcy. This is causing massive amounts of additional stress in one of the already very stressful times in a person’s life. So, the question remains, what will happen to the people that put in a deposit and didn’t receive a service?
Do the Brides get their Deposits Back?
After reviewing the notice on the company’s website, it is apparent that many brides are not going to receive either their wedding dress or their deposit back. This is unfortunate, and the only recourse most of these brides have is t submit what is called a proof of claim.
A proof of claim is a document that you file that says that you are owed money from a bankruptcy entity, a business, or an individual. You file this document with the goal of receiving a payout from any assets that the bankruptcy entity has to auction off. Generally speaking, the companies and people that file proofs of claim receive very little in the way of compensation. This is a cost of doing business for most lenders of money. In this case, it is unfortunate that a large portion of this burden is going to be placed on individuals that had no expectation that their deposit and their order would not be fulfilled.
Generally, this usually doesn’t happen. This is because most businesses don’t take deposits on their services. However, it’s not unusual for small business owners to continue to perform their obligations even after filing bankruptcy out of a moral sense of obligation.
This is, perhaps, the most harmful type of bankruptcy. It directly affects brides who did not know they bet on Alfredo Angelo’s continued operation when they placed their order and gave the company their deposits. I don’t predict any happy endings in this scenario.