How does asset recovery work if an EB-5 project goes bankrupt?

The EB-5 program involves substantial capital contributions to projects in the United States, and investors typically rely on contractual agreements and protective mechanisms, such as escrow accounts, to safeguard their capital. Even so, if a project fails, questions arise about how to recover what was invested.

In this context, asset recovery is the process by which the investor seeks to reclaim what is owed when the contractual terms or guarantees are not fulfilled due to the project’s bankruptcy. In practice, this may mean triggering the mechanisms set out in the contract and, if necessary, going to court to formally file a claim in the insolvency proceedings.

This path follows United States law, and each case is analyzed individually. The likelihood of recovery depends on the contractual guarantees and the legal structure adopted, as well as factors such as whether the funds were held in an escrow account or incorporated into the company’s assets.

• Recovery is not automatic and varies according to the contract.
• It may involve triggering guarantees and filing a claim in bankruptcy proceedings.
• Escrow accounts and the legal structure influence the outcome.

For this reason, before investing, read the contract terms carefully and consult professionals specialized in immigration and bankruptcy law. No return can be guaranteed, so be wary of promises of certain results.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.