How do I collect money owed to my company from another company that went chapter 11? (Bankrupt)?
A company that owes my company k filed chapter 11. anyone know what court docs and procedures I’ll need to look out for to collect my money?
How do I file my invoices/make sure those that I’ve already filed are filed correctly?
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You will receive books & books of paper from their bankruptcy attorneys and the bankruptcy court.
Some time in the next 6 months or so, you will get a statement that shows your outstanding invoices, as will all unsecured creditors.
Then, in one or two years, you will get either a settlement, or more likely, a 1099 showing the taxable income that you have to pay to the IRS on money you never received. Sweet deal isn’t it?
Unless you have a secured debt (like you sold them a truck) OR your products/services are necessary for the bankrupt company to continue business, you aren’t getting this money.
In the past 5 years, my small company has eaten around $100,000 in bad invoices from bankrupted companies. Those that continue doing business pay us in increased future prices, the majority don’t pay.
Here is the approximate ranking of payouts.
1. IRS/State/Local government for back taxes
2. Employees
3. Major creditor, usually a huge bank that the government currently is protecting/owns.
4. Everybody else
Good luck and sorry.
-small manufacturing company
I don’t think you can collect the money.
Check with the court0appointed bankruptcy trustee. They will provide you with all the information to get whatever comes out of the bankruptcy.
you should get notification of a meeting with creditors from the trustee
BK usually settles within 6 months to a year after the initial filing, so unless your company has been included on the original BK filing as a debtor, you won’t get any money out of them.
Contact an attorney.
You need a proof of claim form. File it along with the supporting invoices by the bar date in order to establish your claim against the estate. Someone should be able to direct to the Trustee or Responsible Individual for the case. Find out the court and region in which the case has been filed.
Try the company or court websites for information on the filing instructions. Your claim is more an estate issue than a court issue.
Your claim will be behind the secured claims, priority claims, and administrative claims of the case. Unless this is a company that will reorganize and reemerge, or has some great intellectual property to sell, getting paid back in full may be unlikely. Unfortunately, your recourse is minimal as well. Prepare yourself for a payment well under 100% of whatever is outstanding.
Sorry
you have to register as a creditor if it’s not too late – contact the lawyer representing them – not likely you’ll ever get much of your money if any