Wine Care Storage as previously noted has filed in Chapter 11.  In Chapter 11, the debtor, Wine Care, can be relieved of its obligations - i.e. storage and insurance obligations to its customers.  However, Wine Care will not be discharged from its obligations if fraud can be show.  For example, if an owner of wine selected premium service and Wine Care failed to buy insurance in the amount requested, this could well be fraud.

Chapter 11 is a forum that is friendly to the debtor.  Wine Care Storage will have more leeway to attempt to avoid its rightful obligations to its customers.  This was an expected turn of events and demonstrates the fundamental bad faith of Derek Linbacher and Samanatha Carrington.