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If a company filed for Chapter 11 can a vendor still provide services on a cash before delivery terms
New York, NY
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Posted 11 months ago in Lawsuits / Disputes
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Is it legal to collect payment on CBD for services provided after a company has filed for Chapter 11
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Answers (1)E. Brian Davis
This attorney is licensed in Kentucky and 1 other state.
Posted 11 months ago.
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You can decide to continue to do business with a debtor in a Chapter 11 only on a cash basis. What you cannot do is try to collect money owed before the bankruptcy was filed (except through the bankruptcy court process).
In addition, post-petition transactions, such as the ones you contemplate, will receive a higher priority for payment than most other bills (especially, old bills). |