Brad Wardell's views about technology, politics, religion, world affairs, and all sorts of politically incorrect topics.
Not just the plain kind
Published on June 4, 2005 By Draginol In Business

How screwed up are the bankruptcy laws?

Well, there's a company that owed us over $300,000 in royalties. Literally took in money that was supposed to be for us and simply didn't pay us.  In order to keep us from making a loud public hub-bub about it, they agreed to let us sell some of their products through our store so that we could apply those sales to their outstanding debt.  Their royalty ended up being fairly small, say $2,400. 

But through the magic of bankruptcy, this company claims its debt has been zeroed out and now wants us to pay it $2,400 in cash on the basis that its debt to us -- over $300,000 or so, no longer exists. 

Is that gall or what?


Comments
on Jun 05, 2005
I don't know much about bankruptcy, but fron what I do know is that you still have to pay off much of your debt... at least with personal bankruptcy.

I can't emagine how a company can morally try to get 2000 when it know it owed over 100,000 dollars to it.


This should just go to show you that there are quite a few businesses that just don't give a damn. I have the displessure of being employeed by those businesses and this is probably why my views on honesty in the workplace and business ethics overall is not something many business practice at all.

You work hard, come in everyday, just to get fired because the bosses kid wants work experience. Its a businesses right to fire someone if they want to and hire who ever, but it sure does suck...

I can only imagine that these StyleXP type companies would think this is right of ok to ask for 'their' 2500 dollars even though they owe you 300,000
on Jun 05, 2005
I wax nostalgic for the days of when I used to take ripoff artist to task. Personally. sorry for the ripoff brad.
on Jun 06, 2005
Bugger.

How can you owe them for royalties that they agreed you could keep? That makes no sense.

And even more importantly, does this mean that games from the said company, which is currently the big shelf filler for the TGN library, won't be supplying games? Will this affect the TGN subscription?
on Aug 08, 2005
While they are not correct in their assertion, unless you can get the magistrate or bankruptcy judge to order them to pay you, your 300k is probably gone.  Knowing that as a corporation you probably have a lawyer sitting around somewhere (If not on retainer, one you've used in the past) he'll need to take your claim for debt to the bankruptcy judge and it will have to be settled up there.  At any rate, since they signed a legally binding contract, even if the 300k is gone, there's no way you owe them 2.4k because they were not in bankruptcy at the time the agreement was signed.

Whoah, just realized how out of date I was, I hope you've resolved this now, and I'd like to know how it turned out.