ACT Security bond on bankrupt

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ZAIZAI920911

Member
14 May 2021
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Hi everyone!

My friend is now operating a small retail shop as a franchisee.

He has paid 20k as security bond to franchisor making sure that he is not using third party suppliers. He got receipt and confirmation letter from the franchisor but the issue is that the bond was not paid to the lawyer's trust account.

So just here to ask what if the franchisor went bankrupt, will the security bond being waived as unsecured debt?

Thank all for your help