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If a company filed Chapter 11 8 months ago,are they legally bound to pay in the agreed 30 days the $20000 of credit I gave them?

Asked over 2 years ago - Chicago, IL

Bankruptcy Chapter 11 Bankruptcy Filing for Bankruptcy

I afforded a company $20000 in credit with the company I work for only to find out this company filed Chapter 11 8 months ago. The agreed verbal terms for the $20000 were 30 days from receipt of bill. Does the company I work for have any recourse to collect the debt expediently and is the Chapter 11 company I gave credit to legally bound to pay?

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Attorney answers (1)

Kurt A. O'Keefe

Reputation Level 9

Answered over 2 years ago. Foreclosure Attorney in Saint Clair Shores, MI.

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What was the money used for?
If your claim has the status of an administrative expense, it is first priority to be paid.
I take it they have declined to pay you, so sounds like you need to go to court.
If the money were used for necessary operating expenses of the business, it will be an administrative expense claim.
I would check that with a lawyer, then you can file the claim, get the form from the court clerk, should be available online.
Send that claim to the attorney for the debtor company.
Make the guy you dealt with get you a copy of the bankruptcy notice.

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