Are you protected when a gym files bankruptcy?
Can a gym file bankruptcy?
Yes, a gym can file bankruptcy….
What happens to my lifetime membership when there is a lifetime membership club bankruptcy?
Your fees will be part of the bankruptcy; you can file a claim, but you are unlikely to be reimbursed.
Your fees become part of the bankruptcy estate, and secured creditors come first.
As an NJ Bankruptcy lawyer, I can guide you about the Lifetime Membership Club bankruptcy. What happens when a lifetime membership club files for bankruptcy?
When there is Lifetime Membership Club bankruptcy and the club is sold, you may not have a membership.
As an example, a golf club (Sea Oaks Country Club – NJ) filed for Bankruptcy. The business assets were sold.
In this case, the purchaser bought the assets during the bankruptcy. The new owner is not obligated to pay back or honor the existing lifetime memberships.
What was the result?
- 67 individuals paid $50K to $60K for their lifetime membership (WOW, approximately $4 million).
- Keep in mind that when a business is sold during a bankruptcy, the results are very different. The debtor is unlikely to assume existing membership contracts.
The Golfers hit a “DUFF” and buyer scores tremendously.
The new Golf Club owner “ACED” his shot.
All the lifetime club memberships had no rights to the Club. You should be aware of what happens to your lifetime membership in a club that files for bankruptcy. As more and more businesses file for bankruptcy, it is essential. Do you want to become a stockholder of a company that goes out of business? Essentially, when you pay your lifetime membership fee, you are a financial part of that club.
Be cautious when signing up for lifetime membership clubs. Review the risks with me, and I will advise you on how a lifetime membership club bankruptcy affects you.
If you are adverse to risk, you should not sign a lifetime contract. A monthly fee contract is better.
In summary, beware: Lifetime Membership Clubs Bankruptcy – will affect your membership $ and your membership.
You may want to opt for a monthly payment of your membership fees. I have seen when a club tries to offer deals so you pay in advance, or even better, take out a lifetime membership for a one-time payment.
I am an NJ Bankruptcy Lawyer. Contact me for a complimentary consultation regarding bankruptcy. I will provide bankruptcy help and bankruptcy protection.
If your debts are getting out of hand, call me (201) 446-5904 and set up a free consultation. I will give you expert advice about NJ bankruptcy law.
I am Board Certified in NJ Bankruptcy Law. I devote my entire law practice to NJ bankruptcy law so I can give you the best advice from my over 30 years of experience in filing for bankruptcy.
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I protect your assets. Saving money can be challenging, and I want to ensure your assets are protected. Filing for Bankruptcy may be a good option for you.
After meeting with you, I will advise you whether filing for bankruptcy is the best option for you. Most importantly, if it is not right for you, I will tell you. The type of bankruptcy is also key: Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, or Chapter 11 Bankruptcy.
