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Your Rights in Bankruptcy
By Michael C. Dennis, MBA, CBF 9/05

Bankruptcy Articles
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As the creditor of a debtor that has filed for bankruptcy protection, you have all of the following rights:

  • To place the account on credit hold

  • To change the terms to no business or cash in advance

  • To shorten the credit terms

  • To reduce the credit limit

  • To stop shipments in transit to the debtor

  • To demand that or business entity that owes money.
    Money: A medium of exchange; coined or stamped currency.
    Stamped currency: A medium of exchange; coined or stamped currency. y. common carriers return shipments to you

  • File a reclamation claim
    Reclamation: The process by which a seller demands that an insolvent buyer return goods purchased on credit.
    Claim: A right to payment or other equitable remedy Relates to the judicial means or court procedures by which legal and equitable rights are enforced. in the event of a breach of contract.

  • To refuse to do business with the debtor

  • To ask for statement of account as of the bankruptcy filing date

  • To refuse to accept C.O.D. payments

  • To refuse to accept company checks

  • To demand payments under a personal guarantee
    To assume liability for the debts or obligations of another in the event of a default. ,

  • To sue guarantors that do not pay you
    A person who assumes liability for (guarantees) the debts or obligations of another in the event of a default.

  • To attend court hearings

  • Bring to the attention of the trustee
    Trustee: A person who takes possession of a debtor's assets in a bankruptcy proceeding and liquidates them to pay creditors. Appointed by the bankruptcy judge unless the district has a U.S. Trustee. or the Bankruptcy Court any facts proving the debtor has hid assets, or committed some other type of bankruptcy fraud A deception used to induce a supplier to sell. In a fraud, the debtor has no intention of repaying debt.

  • To ask the Court to appoint a trustee

  • Ask the court for approval to seize the assets that your company has a perfected security interest in

  • To join the creditor's committee.

  • To refuse to join the creditor's committee.

  • To refuse to return payments in response to a reclamation demand

  • To negotiate and if necessary to litigate over claimed preferences

  • To petition

Petition: The document that initiates a bankruptcy case. "Pre-petition" events are those that occur before a bankruptcy petition is filed, and "post petition" events are those that occur after the petition is filed. the Court to convert a Chapter 11 reorganization bankruptcy into a Chapter 7 liquidation.

 
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