What happens when a smaller customer files bankruptcy?
When a smaller customer files bankruptcy the “keep doing business” question is less critical, and the bankruptcy filing may just be the final straw that leads you to want to stop selling or providing services to the customer. When one of your bigger customers files bankruptcy, the stakes go up — often way up.
What should I do if a key customer filed for bankruptcy?
(Another key question is making sure your pre-bankruptcy claim gets on file or otherwise acknowledged.)
Is the number of bankruptcy filings going up?
Business bankruptcy filings fell 1 percent to 58,322. Samuel J. Gerdano, executive director of the American Bankruptcy Institute (ABI), expects bankruptcies to rise in months ahead as unemployment hovers near 10 percent and access to credit remains tight.
Can a customer pay after a Chapter 11 bankruptcy?
In general, if the bankrupt customer is a Chapter 11 debtor in possession, the customer is legally permitted to pay for post-petition (post-bankruptcy filing) purchases of goods and services in the ordinary course of business.
What happens when a customer files for bankruptcy?
Knowing your rights and remedies will help to mitigate continuing losses to the customer and improve your likelihood of a meaningful recovery in the bankruptcy. When a customer has filed for bankruptcy, you will be notified whether that customer has filed under Chapter 11 or Chapter 7 of the Bankruptcy Code.
What was the number of bankruptcy filings in 2009?
210 public companies (i.e., companies with publicly traded stock or debt) filed for chapter 7 or chapter 11 bankruptcy protection in 2009, compared to 138 in 2008. This figure falls short of the record 263 filings in 2001 but nevertheless represents the most public-company bankruptcy filings since 2002, when there were 220.
Who are the companies that went bankrupt in 2009?
Prominent names in the bankruptcy headlines of 2009 that did not crack the billion-dollar threshold included media conglomerate Sun-Times Media, which once owned the Chicago Cubs; newspaper and web-site publisher the Journal Register Company; clothing retailer Eddie Bauer; and elevator-music pioneer Muzak.
What are the rights of an insolvent customer in bankruptcy?
The Bankruptcy Code recognizes – and expands – your right under the Uniform Commercial Code to reclaim goods sold on credit to an insolvent customer. You must be vigilant in invoking your reclamation rights: if you fail to act promptly, you will waive them.