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I have a manfacturing plant that makes products and ships to customers. If I file a chapter 11 Do I have to tell my customer
Minnesota
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Posted 3 months ago in Bankruptcy / Chapter 11
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I am worried that if I do not tell my customers that I am in chapter 11 and then have to go chapter 7, that I may be personaly liable for not disclosing all the information needed for the prospective customer to make a decision to buy from me or not.
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Answers (1)
John Robert Rizzardi
This attorney is licensed in Oregon and 1 other state.
Posted 2 months ago.
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If you do not owe your customers any money, then you do not have to list them. However, if they have provided you with a written contract to supply products, you do have to list that contract and they need to be notified.
My experience is that most customers find out about the Chapter 11, and they find out from your competitors. As a suggestion, consider talking to the customer in advance of filing so your competition will not take advantage of your filing to try to win the customer from you. Competitors will simply say that your company is "bankrupt", not that it is reorganizing. They will distort the truth. On the other hand, your straightforward approach to the customer, and assurance that you can ship on time, etc., should be appreciated. Obviously, discuss all of this with your local chapter 11 attorney. You need one. |
