Minnesota Rusco customers can recover losses if they file a claim by July 1

(FOX 9) - A new court order could make it easier for Minnesotans impacted by Minnesota Rusco’s sudden closure to get some of their money back.

Minnesota Rusco recovery fund

What we know:

The United States Bankruptcy Court has approved a procedure that allows Minnesota Rusco customers to more easily pursue claims through the Minnesota Department of Labor and Industry’s Contractor Recovery Fund, Attorney General Keith Ellison announced Wednesday.

The new process lets consumers request a lift of the bankruptcy stay without needing an attorney.

Once a judgment is received, former customers can file for relief through the Contractor Recovery Fund.

Only Minnesota residents are eligible and are strongly encouraged to apply before July 1, when the current application cycle closes.

Dig deeper:

Applicants should be aware that the fund can only pay out a total of $550,000 for claims against any one company.

Due to many homeowners being affected, the total claims are likely to exceed that cap, a press release says.

If that happens, eligible homeowners will receive a prorated share of the available funds, and future applicants may find the fund exhausted for later cycles.

People seeking more information about the application process can contact the Department of Labor and Industry by email, by phone at 651-284-5057, or online.

The backstory:

Minnesota Rusco’s abrupt closure left many homeowners with out-of-pocket losses.

Historically, former customers would need to win a court judgment before applying to the Contractor Recovery Fund, but the bankruptcy case made that process more complicated.

Subcontractors and material suppliers are not eligible for recovery.