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Can I sell products and collect payment from a company that has filed chapter 11 and has a past due account prior to filing dateA 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. Attorney answers (1)
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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. 2 people marked this answer as good
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