Warranties and Denver Companies

A question comes up of what happens if I purchase a product from a company and there is an extended warranty I purchased before a company filed for Chapter 11 bankruptcy or Chapter 7 bankruptcy in Denver.  Do they have to honor the warranty I paid good money for?  The simple answer is No.  They often will choose to because doing so garners good will and gives consumers that they intend to keep doing business and supporting their customers.  Ultimately though, this is a strategic choice they have made and it is not mandated they do this.  Many will think this is unfair, but the bankruptcy court will look at the assets and the liabilities and seek to provide those who are the most heavily owed the most relief.  Think of it this way…  If you had a marketing company that sold services to Frontier Airlines and they were in debt to your company 3 million dollars, is it better for those who are going to be injured by the filing to have Frontier pay your company or the 5,000 flyers who are out 1 flight.  Most often, the courts will try and relieve the company as it is a source of jobs and there were actual services rendered.  If you are going to do business with a company in bankruptcy, just be cautious.