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how can I get compensation for goods if the customer is filing for bankruptcy?
Philadelphia, PA
Viewed 29 times.
Posted 9 months ago in Bankruptcy / Debt
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I manage a small business and one of our net trem customers owes us over $10,000. now they are filing for bankruptcy.
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Answers (1)Thomas Robert Siegel
This attorney is licensed in Illinois.
Posted 9 months ago.
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We can't answer this question without much more information. What sort of bankruptcy is being filed? Chapter 7,11,12 or 13? Does the customer have any assets? If the bankruptcy debtor is a corporation, has anyone signed a personal guaranty on the credit account?
The first step in the bankruptcy case will be to file a proof of claim with the Court. This puts the debtor and Courts on notice that you may have a claim against the bankruptcy debtor. There may be a number of remedies available to you but that is a fact-dependent analysis and I don't have the appropriate information to make such a determination. Some information that would help: 1) type of bankruptcy filed 2) customer entity type (corp, partnership, individual, etc.) 3) when in relation to the bankruptcy filing the debt was incurred 4) does the customer have any assets 5) did the debtor have any known plans or intentions to file bankruptcy when the debt was incurred 6) if the customer is a corporate entity, is there any personal guaranty See if you can find a local bankruptcy attorney that represents creditors to give you a consultation on the options available in your specific case. |