Ishaq Kundawala, J.D. and law professor at NSU, specializes in bankruptcy law and said whenever a company files a bankruptcy case, customers who paid that company for services or products and never received them may not get anything at all.
Kundawala was referring to a recent Leave it to Layron investigation involving at least 100 creditors who paid more than $330,000 in deposits to Exclusive Windows and Doors LLC. The company filed a Chapter 7 bankruptcy case with the Southern District of Florida in February.
“And there could be more that he didn’t list in the schedules, which could be troubling,” Kundawala said.
The trustee assigned to the case also used the word “troubling” in a statement sent to the the LITL team:
“The allegations raised by several purportedly defrauded customers are troubling,” the statement read. “The trustee is currently investigating the debtor and potential assets belonging to the debtor’s bankruptcy estate. The trustee and her professionals will vigilantly pursue and administer all viable assets and potential causes of action, in order to maximize the recovery and distribution available to creditors and defrauded customers.”
Kundawala said it’s a strong statement.
“When you start to see red flags like that, and you think of fraud, you think that this debtor might be in trouble,” Kundawala said.
He said the fact that the trustee is already involved so early in the Exclusive Doors and Windows petition is also unusual.
“Dishonest debtors, those who engage in fraudulent conduct, they don’t get the benefit of the bankruptcy system,” Kundawala said.
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