Please Note: Once you press play it will take a few seconds for the episode to start playing.

Predatory Film Distributors: The Bankrupt Reboot Scam

I’ve spoken about predatory film distributors before on the show (The Dark Underbelly of Predatory Film Distributors – BEWARE!) but I just discovered how some of these scumbags have figured out how to absolutely screw over filmmakers using a legal loophole. It’s called the Bankrupt Reboot Distribution Scam.

Here’s how they do it. A predatory film distributor will prey on desperate indie filmmakers and will try to obtain the rights to as many low budget indie films as they can, usually for no money upfront in a short period of time. Let’s say 1-2 years, if not faster. During that time they sell-off the rights in one big transaction to a bunch of different platforms, outlets, streaming, foreign agents, etc.

Now here’s the rub, rather than actually paying filmmakers what they are owed, the distributor files for bankruptcy protection, which is extremely easy to do in the United States. So you must be asking

“If the distributor goes bankrupt, what happened to the rights of all those films?”

Glad you asked. These bottom dwellers go to the bankruptcy court hearing and then buy back all the rights to the catalog of films from their own bankrupt company. The court has no other choice because that is how the bankruptcy law is written and there’s no one else there to buy these assets.

These bastards then form a new company and assign the newly purchased film catalog to themselves through that company. Now they are no longer legally obligated to pay the filmmakers (or anyone else they owe money to). So they own the film you killed yourself to make for pennies on the dollars and they never have to pay you a thing.

This is made possible because of the original contract the filmmaker signed, which has a clause absolving the distributor in the event of bankruptcy. Then to add insult to injury when the rights they originally sold off expire, they re-sell them again.

These predators run this scam over and over and over with new companies formed each time. This is an extremely profitable business model. It’s not ethical but it is legal.

In this episode, I breakdown a case study of how one of these predatory film distributors pulled this off and I also go over how you can protect yourself. Make sure you take some notes because this episode is a doozy!

Right-click here to download the MP3 
Download on iTunes Direct
Watch on IFH YouTube Channel



  1. $1 Closed Captions for Indie Filmmakers – Rev ($10 Off Your First Order)
  2. Shooting for the Mob (Based on the Incredible True Filmmaking Story)
  3. Shooting for the Mob – FREE AUDIOBOOK VERSION
  4. Equity Crowdfunding Masterclass


  1. Indie Film Hustle TV (Streaming Real-World Film Education)
  2. Hollywood Film School: Filmmaking & TV Directing Masterclass
  3. Filmmaker in a Box – Learn How to Make an Indie Film – 18 Hours+ of Lessons 
  4. Storytelling Blueprint: Hero’s Two Journeys
  5. The Dialogue Series: 38 hours of Lessons from Top Hollywood Screenwriters


  1. Indie Film Hustle® Podcast
  2. Filmtrepreneur® Podcast
  3. Bulletproof Screenwriting® Podcast
  4. Six Secrets to getting into Film Festivals for FREE!
  5. (Download Your FREE Filmmaking Audio Book)

Action Items:

If you liked Predatory Film Distributors: The Bankrupt Reboot Scam, then you’ll love:

Enjoyed Predatory Film Distributors: The Bankrupt Reboot Scam? Please share it in your social networks (FacebookTwitter, email, etc) by using social media buttons at the side or bottom of the blog. Or post to your blog and anywhere else you feel it would be a good fit. Thanks.

I welcome thoughts and remarks on ANY of the content above in the comments section below…

Get Social with Indie Film Hustle:
Facebook: Indie Film Hustle

Twitter: @indiefilmhustle
Instagram: @ifilmhustle

Podcasts You Should Be Listening To:
Podcast: Indie Film Hustle® Podcast
Podcast: Bulletproof Screenwriting® Podcast
Podcast: The Filmtrepreneur® Podcast

Stuff You Need in Your Life:
IFHTV: Indie Film Hustle TV
Rise of the Filmtrepreneur®: How to Turn Your Indie Film into a Moneymaking Business
Book: Shooting for the Mob (Based on the Incredible True Filmmaking Story)

Gain Access to IFHTV Here

Please note some of the links below are affiliate links, and at no additional cost to you, I will earn a commission if you decide to make a purchase or use a service. Understand that I have experience with all of these services, products, and companies, and I recommend them because they’re extremely helpful and useful, not because of the small commissions I earn if you decide to buy something.

Facebook Comments

1 Comment

  1. […] Predatory Film Distributors – The Bankrupt Reboot Scam […]