Can I sell products and collect payment from a company that has filed chapter 11 and has a past due account prior to filing date

Livermore, CA Viewed 119 times. Posted 7 months ago in Bankruptcy / Chapter 11
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A customer of our owes past due funds. That customer has filed chapter 11, however still wants to purchase products from us on a COD basis. Would we be liable for having to return those funds since we are a creditor prior to Chapter 11 filing? Any funds currently collected would be towards current purchases after the filing date.
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Robin Mashal

Robin Mashal

Contributor Level 7
This attorney is licensed in California. Posted 7 months ago. Flag as objectionable
Disclaimer: The materials provided below are informational and should not be relied upon as legal advice.

Concerning your pre-bankruptcy claims, you need to file proof of claims in the bankruptcy case. You may be able to do current transactions with this customer on a cash on delivery (COD) basis. You should review the facts with your own bankruptcy counsel.
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