I recently had first experience with a customer filing Chapter 11
and learned a lot in the process. A couple of things are important
and require quick action on your part. First, see if there is any
chance you are eligible to file an Administrative Claim. An
administrative claim can put you at the head of the pack for payment,
and in my case I was eligible because all of the open balance had
been sold to this customer within 45 days of his store filing
bankruptcy. Several years ago protections were put in place for the
cases where a buying spree took place when the filer obviously had
advance knowledge that they were going to file, and just decided to
shop 'til they dropped. I had actually shipped a casting to this
customer on Thursday, and by Monday he was calling to say he’d
filed. Obviously I was fuming.
I talked to Jewelers Board of Trade and they gave me suggestions,
plus I did a good deal of internet research on.gov sites. Your state
will have its own particular laws, so be sure to check their site
first. Depending upon the specifics of your case, you may be able to
get something back.
Good luck to you!
TechForm Advanced Casting Technology