Frequently Asked Questions

Inspired Healthcare Capital (IHC) is a company that developed and operated senior living and assisted living facilities. To fund these projects, IHC raised hundreds of millions of dollars from investors through Delaware Statutory Trust (DST) interests and limited partnership funds, sold primarily through independent broker-dealers across the country.

A Delaware Statutory Trust is a legal entity that holds real estate and allows multiple investors to co-own fractional interests. DSTs are popular as 1031 exchange replacements because they allow investors who sold real property to defer capital gains taxes by reinvesting into the trust. While the structure itself is legal, DSTs are illiquid, high-risk, and often inappropriate for retirees or investors who need access to their capital.

Inspired Healthcare Capital has filed for bankruptcy. The company raised money from investors through its DST products and fund offerings, using the proceeds to develop and operate senior living facilities. Those facilities faced financial difficulties, ultimately resulting in bankruptcy proceedings. Investors who put money into these products now face the potential loss of some or all of their principal.

According to InvestmentNews reporting, broker-dealers collected more than $100 million in commissions from selling Inspired Healthcare's products. These high commission structures create significant financial incentives that can influence a broker's recommendations — regardless of whether the investment is suitable for the specific investor. This is a core issue in many FINRA arbitration claims.

Possibly yes. Your claim is not primarily against Inspired Healthcare — we can assist with claims against the broker-dealer or financial advisor who recommended the product. Under FINRA rules and federal securities law, brokers are required to recommend only suitable investments, to fully disclose all material risks, and (since 2020) to act in your best interest under Regulation Best Interest. If they failed any of these obligations, you may have a FINRA arbitration claim.

No. The bankruptcy of the underlying investment does not affect your rights against the broker-dealer who sold it to you. Your claim is based on the broker's conduct — what they recommended, what they told you, and what they failed to disclose — not on whether IHC itself survives. You can pursue your broker-dealer in FINRA arbitration regardless of IHC's bankruptcy status.

No. You will continue to own the investment and be entitled to receive any moneys recovered through the bankruptcy. While we can pursue "rescission" — effectively voiding the purchase transaction — as part of your legal claim, you are not required to give up your ownership interest in the IHC or Inspired Healthcare DSTs to pursue a legal claim.

Common claims in DST investment arbitration cases include: (1) unsuitability under FINRA Rule 2111 or Reg BI — the investment was not appropriate for your financial situation, age, or risk tolerance; (2) failure to disclose material risks — your broker did not tell you the investment was illiquid, high-risk, or dependent on IHC's performance; (3) overconcentration — too much of your portfolio was placed in a single product or sector; (4) misrepresentation — the product was described as safer or more stable than it actually was; (5) breach of fiduciary duty where applicable.

In FINRA arbitration, you may be able to recover: the principal amount you invested and lost, statutory damages (including interest), well-managed or market-adjusted damages (based on how a proper investment would have performed), consequential damages (e.g., if you were forced to liquidate other assets), interest on your losses, attorney's fees, and in cases of egregious misconduct, punitive damages. Each case is different — contact us for an evaluation of what you may be entitled to recover.

FINRA (Financial Industry Regulatory Authority) is the self-regulatory organization that oversees broker-dealers in the United States. When investors have disputes with their brokerage firms, most customer agreements require disputes to be resolved through FINRA arbitration rather than in court. FINRA arbitration is generally faster, less expensive, and more investor-friendly than federal court litigation. Bixby Law PLLC handles FINRA arbitration claims nationwide.

The typical FINRA arbitration case takes 12–18 months from filing to award. Cases can settle earlier — many resolve before the final hearing. The timeline depends on the complexity of the claim, the amount at issue, and whether the parties reach a negotiated resolution.

Time may be limited, but there is still time to file a claim, and we encourage investors to act quickly to ensure your rights are preserved. Given that IHC's bankruptcy is ongoing and losses are crystallizing now, you should consult with an attorney as soon as possible.

No. Bixby Law PLLC represents clients nationwide through FINRA arbitration. Most of our client communication happens by phone, email, and video call. You do not need to travel to Florida. FINRA arbitration hearings can often be conducted in the city where you live or online.

Nothing upfront. We handle Inspired Healthcare claims on a contingency fee basis — our fee comes only from what we recover for you. If we do not win your case, you pay no attorney fees and do not have to reimburse us the costs spent on your case. The initial consultation is completely free and confidential.

It helps to have: the name of the investment product(s) you purchased, the name of the broker-dealer or financial advisor who sold it, approximate investment amount and date, and any account statements or documents you received. If you do not have these, that is fine — we can work with what you have and help you obtain records.