General Question

Jonathan_hodgkins's avatar

Client filing for bankruptcy?

Asked by Jonathan_hodgkins (625points) 1 week ago

A client just wrote me to tell me that their company is filing for bankruptcy. The issue is that they still owe me $2600.

What should I do or what are my options?

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1 Answer

elbanditoroso's avatar

At some point you will need to file a claim against the company (to the bankruptcy trustee, once they are appointed).

You’ll wait and wait and wait. There’s a hierarchy of who gets paid first (lawyers and banks) and who gets paid later (probably you).

If the company is liquidating, you might end up with nothing (or pennies on the dollar). If they are reorganizing but staying in business, the will want to shed as many debts as they can. You may get something and you may not. Depends on the assets and the debts.

Your first step is to see where they are filing bankruptcy and when it is possible for you to file a claim.

read this

Good luck.

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