# Chapter 11



## Luther (Oct 31, 2007)

If you were on contract to service a client and you just received notice that they filed chapter 11, would you continue servicing the client?

Keep in mind the client owes you a great deal of money, some of which is over 60 days old. :crying:


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## Dubliner (Aug 20, 2008)

If they go bankrupt if you get anything it will more than likely be pennies on the dollar, beware. They take all the assets, turn them liquid and divy the money out to the creditors.


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## Dubliner (Aug 20, 2008)

If it's a business, you might want to check with the bankrupcy judge for a judgement on continuing service. Gets sticky. MHO


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## valpoguy (Jan 19, 2009)

Absolutely not, you recieved notice, so you are listed as a creditor, so you'll not see a dime. The only way i would consider servicing them is if they pay cash, and attempt to pay some of their debt with you. If i were you I would show up to their proceedings and make sure they are listing all of their assets, I have a buddy going through the same thing right now, the person going BK has transfered things to his girlfriend to avoind losing them, which is fraud if it is within 90-120 days of the BK, I'm not 100% sure of the time frame.


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## lbfmd (Dec 26, 2008)

check and see who the Bankruptcy judge put in charge? an 11 is restructuring before liquidating anything. They nornmally put a trustee in place to pay the bills and what normally happens is your bills after the filing will get paid quicker, but the billing before is anyones guess. Lots of times if it s abig company they'll set up a 12 month payment schedule for the pre bankruptcy money so you may get all of it.

best thing to do is call the trustee and get a new signed contract with him/her or have them sending you something in writing agreeing to the contract. if you have the money it may be worth to hire a lawyer if that does not work.


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## hydro_37 (Sep 10, 2006)

Ask your attorney.


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## CityGuy (Dec 19, 2008)

Try and see if you can get named in the bankruptcy then at least you have a chance at getting some of the incurred costs back. More than likely not all but you should get some.


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## Mark Oomkes (Dec 10, 2000)

I give up.   xysport :realmad:


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## EJK2352 (Jul 22, 2001)

TCLA;760121 said:


> If you were on contract to service a client and you just received notice that they filed chapter 11, would you continue servicing the client?
> 
> Keep in mind the client owes you a great deal of money, some of which is over 60 days old. :crying:


No way. You will be lucky if you see one dime from this account. I have a friend that was in a similar situation, and he has not seen any payment in over two years.


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## procut (Dec 1, 2004)

Chances are your probably SOL, I've had a few customers that owed me $$ file bankrupcy, and I never saw anything. Each time it was for a few hundred dollars, so I never really persued it any, though.


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## WIPensFan (Jan 31, 2009)

Why would you keep servicing them if they owe you that much money? Hopfully you will see something, but don't keep working for free.


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## RODHALL (Nov 23, 2005)

lbfmd;760132 said:


> check and see who the Bankruptcy judge put in charge? an 11 is restructuring before liquidating anything. They nornmally put a trustee in place to pay the bills and what normally happens is your bills after the filing will get paid quicker, but the billing before is anyones guess. Lots of times if it s abig company they'll set up a 12 month payment schedule for the pre bankruptcy money so you may get all of it.
> 
> best thing to do is call the trustee and get a new signed contract with him/her or have them sending you something in writing agreeing to the contract. if you have the money it may be worth to hire a lawyer if that does not work.


this is correct... If you can get the trustee to reconfirm the contract. then you can keep plowing and will get paid for all previous work in time. you'll not get the % for late fees, but still.

If the trustee say no then your more then likely out of the money owed also.


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## rblake (Nov 17, 2007)

Several years ago i started work at a company that went into chapter 11. my contact told me one day to invoice this months and next months work by a certain date. I didnt ask questions. I got paid and then recieved paper after paper from the courts. We kept on taking care of the place and never had a problem. Good luck


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