Information for Galaxie customers from the trustee; BBB tips

July 26, 2012 3:10:49 PM PDT
How to file a complaint or check on a company's standing with the Better Business Bureau.

TO FILE A CONSUMER COMPLAINT WITH THE ATTORNEY GENERAL: illinoisattorneygeneral.gov

TO CHECK STATUS OF A BUSINESS: chicago.bbb.org

FROM THE BANKRUPTCY APPOINTED TRUSTEE FOR GALAXIE:

Frequently Asked Questions

What is the status of Galaxie Home Improvements?

It has filed for liquidation under Chapter 7 of the Bankruptcy Code.

Does this mean that Galaxie is out of business?

Yes

Who is in charge of Galaxie's liquidation?

David P. Leibowitz has been appointed chapter 7 trustee by the United States Trustee.

Who is the United States Trustee?

The United States Trustee is a division of the United States Department of Justice which provides administrative oversight for all bankruptcy cases in the US.

What does the chapter 7 trustee do?

The Chapter 7 trustee determines what assets Galaxie has, if any, turns them into cash (liquidates them) and pays them to creditors in accordance with their priorities.

How many contracts does Galaxie have outstanding?

Trustee has been informed that there are 132 consumers with open contracts. These are called "executory contracts" because they have been started and not finished and there is still performance due from both Galaxie (work to be done) and the consumers (payment).

Will the Trustee finish these contracts?

The chapter 7 trustee does not have funds or capital with which to operate Galaxie's business and so cannot assume these contracts. Consumers should not assume that the trustee will be performing contracts entered into by Galaxie.

What will this mean?

The contracts will be "rejected" by the bankruptcy trustee. Consumers will then be entitled to file a proof of claim in the bankruptcy case and participate in any recovery the trustee makes to the extent other creditors don't have priority.

Has the trustee given authority to anyone else?

No. The trustee has not yet hired counsel, financial advisors or anyone else to serve as his agent. Anyone who says that he, she or it is acting at the request of or on behalf of the trustee does not have such authority. Galaxie, with the permission of the trustee, sent a letter to its creditors advising them of the filing of the bankruptcy case and some of the implications of this filing.

Will I get my money back?

That is uncertain. A secured creditor, Allied, has a lien on most of Galaxie's assets. It is possible that the trustee might make recoveries which are not subject to the secured creditor's lien.

What happens next?

The trustee is evaluating the assets and liabilities of Galaxie. He is also in communication with Galaxie's secured creditor as well as persons who might be interested in acquiring Galaxie's name and good-will. The trustee is very intent on protecting the interests of consumers in this case to the extent permitted by the law and facts. There will be a meeting of creditors at the Dirksen Federal Building, Room 800, September 13, 2012 at 130 pm. Creditors are welcome to attend.

Do consumers have other remedies?

Consumers may consider approaching the Illinois Attorney General's Office if they believe that they are victims of consumer fraud. As chapter 7 trustee, I have no opinion or position on this aspect of the case.

Contact the Trustee: trustee@lakelaw.com


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