Bankruptcy Prompt Action and Verification of Bankruptcy
Review the Contract
Verify that a bankruptcy has actually been
filed and to obtain information on the particular bankruptcy case. Take Steps to Avoid a Violation of Automatic Stay
Inform all of the internal people involved in
the particular account ◦ Information sharing will help to avoid unintended violation of the bankruptcy code’s automatic protection of entities in bankruptcy from collection actions. Reclamation of Goods
The Bankruptcy Code also provides a mechanism for
sellers to reclaim goods shipped to an insolvent buyer.
This is only applicable if the property recovered is:
◦ A good ◦ It was sold in the ordinary course of business ◦ Buyers was insolvent when it took physical possession ◦ Written demand for return of the good was made within a brief fixed timeframe of buyers' possession. File a Proof of Claim
It is important to make sure that a proof of
claim is timely filed with the bankruptcy court
◦ An attorney is not necessary to prepare an file a
claim Determine Your Level of Involvement in the Bankruptcy May be worth pursuing an appointment to the creditor’s committee
◦ The meeting of creditor's is an informal hearing
where any creditor may appear and ask questions of the debtor on the record. The most important step to minimizing risk and maximizing return as a creditor in a bankruptcy case is to compile as much information as possible in order to preserve certain rights and to develop a strategy for the case.