Did Lear Capital File for Bankruptcy? Understanding the 2024 Reorganization

Did Lear Capital file for bankruptcy? Yes, Lear Capital completed a Chapter 11 reorganization in early 2024. The company maintained full operations throughout the process, continuing to serve customers without interruption while restructuring its financial obligations. Both during and following the reorganization, Lear Capital has experienced sustained demand for precious metals, particularly as gold reached record highs in 2025.

The reorganization was a financial restructuring rather than a business closure. Throughout the process, existing customers retained access to their accounts, new customers continued making purchases, and the company's precious metals inventory and customer service operations remained fully functional. At no time during the process or since, did a single customer, vendor, or business partner incur a monetary loss as a result of the reorganization.

Chapter 11 Reorganization vs. Liquidation

Chapter 11 bankruptcy serves a fundamentally different purpose than Chapter 7 liquidation. While Chapter 7 involves shutting down operations and selling assets to pay creditors, Chapter 11 allows businesses to continue operating while restructuring their debts and obligations.

The distinction matters because Chapter 11 reorganizations have become increasingly common across American business, reaching a 14-year high in 2024 according to S&P research. Major corporations ranging from General Motors to retailers like J. Crew and Neiman Marcus have used Chapter 11 as a strategic tool for financial restructuring.

These reorganizations often result in stronger, more competitive companies with improved operational efficiency and cleaner balance sheets.

Chapter 11 is specifically designed to help viable businesses emerge stronger by reorganizing their financial structure while maintaining operations.

As an analysis by Cornell Law School explains, "[t]he premise behind a chapter 11 reorganization is that a debtor is more valuable as an operating entity than in liquidation (i.e., through a chapter 7 bankruptcy). Hence, chapter 11 bankruptcy is generally chosen when the continuation of a debtor’s business generates more value than a closure."

For Lear Capital, the reorganization meant addressing financial obligations from a 2021 settlement while preserving the company's ability to serve its customer base. The company chose reorganization to avoid any disruption in services, ensuring that customers could continue purchasing precious metals and managing their IRAs without interruption.

The company's decision to proactively address these challenges through reorganization, rather than attempting to operate under financial strain, was focused on long-term stability.

Operational Continuity During Reorganization

Throughout the reorganization process, Lear Capital maintained complete operational continuity. The company continued processing orders, shipping metals, managing IRAs, and providing customer service without interruption.

Customer reviews on platforms like Trustpilot and ConsumerAffairs from during and after the reorganization period show consistent positive feedback:

• Trustpilot: 4.9 stars from more than 2,700 customer reviews
• ConsumerAffairs: 4.9 stars from more than 1,500 reviews
• Google Reviews: 4.7 stars from more than 400 reviews
• Retirement Living: Earned "Great Service" designation for 2025
• BBB: A+ rating and 4.6 customer review rating from more than 100 reviews

The maintenance of operations during reorganization required careful planning and execution. Lear preserved its relationships with suppliers, maintained inventory levels, retained experienced staff, and ensured continuous insurance coverage for stored metals.

Customer Protections Remain in Place

A critical aspect of Lear Capital's reorganization was the preservation of all customer protections. Metals stored in IRAs at Delaware Depository remained and continue to remain fully insured and segregated. Direct delivery customers continued receiving shipments with complete insurance coverage. The company's buyback program, while never legally guaranteed (standard across the industry), continued operating without interruption.

The reorganization did not affect customer ownership of metals already purchased. Whether held in IRAs or personal possession, customers retained full title to their precious metals.

Insurance coverage through London Underwriters remained continuous, protecting metals during storage and transit. The Delaware Depository maintained its operations normally, with no impact on security, segregation, or accessibility of stored metals. These protections meant that even during the reorganization process, customer assets remained secure and accessible. And they remain secure and accessible today.

Current Company Status and Improvements

Post-reorganization improvements have focused on transparency and customer protection. The company publishes its spread ranges explicitly (2-35%), provides detailed shipping timelines, and offers a 24-hour risk-free cancellation policy.

The company's continued partnership with Judge Andrew Napolitano as spokesperson and Glenn Beck's long-term support demonstrate confidence from public figures with reputations to protect. These relationships were maintained through the reorganization.

Financial performance has also strengthened post-reorganization. With gold reaching historic highs and silver surging over 40% in 2025 to break the $40 barrier. Lear Capital has experienced sustained order volume.

Lear Capital's Chapter 11 reorganization was a successful financial restructuring that preserved operations while addressing legal and financial obligations. The company's emergence with strong ratings, positive customer reviews, and improved transparency demonstrates that reorganization served its intended purpose: creating a sustainable business structure while maintaining service quality.